New Penalties workshop at Individuals Stakeholder Forum - 2 October 2008
TaxAid were pleased that HMRC intended to fully consider and understand
the customer's behaviour before considering whether a penalty was
due.
HMRC's view that 'People do make mistakes' and that
making a mistake despite taking reasonable care would not be penalised was
seen as a step in the right direction.
The intention of HMRC to consider, understand and take into account the
abilities and circumstances of the customer when deciding on the behaviour
that gave rise to any error was seen as a positive step.
TaxAid did have concerns as to how that HMRC 'intention' would
be translated into consistent practical application by their officers; the
extensive recording system of penalty details was seen as a potential way
of ensuring this.
TaxAid made the point that their constituency regularly consisted of those
who were most often 'vulnerable' and hoped that their 'abilities
and circumstances' would be taken into account fully.
TaxAid emphasised that a large number of customers would not know that
they did not know ('unknown unknowns') they were making an error
and would 'fall into the trap' of penalties. HMRC accepted that
they must be extremely mindful of that when exercising their judgement on
errors.
TaxAid deal with the majority of their callers by way of telephone, and
that 70 per cent do not need them again. HMRC considered that they could
probably learn from such a high level of 'closure', and how
TaxAid managed to achieve this.
HMRC offered to give presentations to Tax Aid's advisers if they
felt that this would be beneficial; there are logistical problems with this
- the advisers are geographically widespread - but would be
considered.
