Draft Regulations - Electronic dividend vouchers and tax deduction certificates

The Inland Revenue has today published draft regulations (PDF file 104K) that will allow statutory dividend vouchers and tax deduction certificates to be delivered by electronic means. The change would be voluntary. Both parties, the company or financial institution, and the shareholder or investor, would have to agree to electronic delivery.

Comments on these draft regulations should be sent, by 12 September 2003, to:
Chris Davis
Revenue Policy, Cross Cutting Policy
S23 West Wing
Somerset House
London
WC2B 6LB

email: chris.davis@ir.gsi.gov.uk
Please mark your email "consultation on draft e-tax certificates regulations"

Your comments may be made public unless you indicate that you would prefer them to remain confidential.

We expect that the final version of the regulations will be made in November 2003

Background
The draft regulations would allow statutory dividend vouchers and tax deduction certificates to be provided by electronic means. The Inland Reveue do not intend to be prescriptive about the methods of electronic communication that may be used, but possibilities include sending PDF files by e-mail or making the voucher or certificate available on a secure website for the recipient to download.

The change would give companies the option of offering electronic vouchers to their shareholders, and persons paying interest, such as banks and building societies, local authorities, insurance companies, small companies and discretionary trustees, the option of offering electronic tax deduction certificates to their investors. Neither side will be forced to use or acceppet electronic communciation for these purposes.
The aim of this proposed change is to support the Government's drive to encourage e-business, extending the number of statutory processes that can be carried out electronically. In the long term, the change is expected to deliver savings for companies, financial institutions and some discretionary trustees by reducing administration costs.

Regulatory Impact Assessment
A partial regulatory impact assessment covering these measures is available at Electronic dividend vouchers and tax deduction certificates (PDF 95K)

Comments on that assessment are welcome and should be sent to Chris Davis at the address given above.

We would particularly appreciate details of expected implementation costs and the savings that might be realised. Are the assumptions we have made at paragraphs 17 and 18 of the assessment correct? Are there any costs that we have not identified?

We would also be grateful for comments from investors who may be offered electronic vouchers or certificates.

This information will help us to finalise the Regulatory Impact Assessment.