In July 2007, the Tribunals, Courts and Enforcement Act was passed. This legislation, sponsored by the Ministry of Justice, laid the foundation for the establishment of a new tribunal replacing, most significantly here, the General Commissioners of Income Tax (GCITs). HMRC has recognised this as an opportunity to modernise its procedures and make them more consistent across the taxes and duties it administers. In particular, it plans to launch a more consistent approach to internal review setting it aside from caseworkers and their managers.
A consultation document was published in October 2007 which resulted in 42 written responses. In addition, HMRC held 20 meetings with 28 representative bodies. The HMRC response document, published on 12 March 2008, incorporated a Government announcement about future direction.
In particular, it announced the new statutory entitlement to a review of HMRC tax decisions. It announced reviews will be optional, time limited and conducted by officers not involved in the making of the original decision.
Review is intended to provide a less expensive, effective way of resolving disputes about appealable decisions without recourse to the tribunal. At the same time taxpayers will have a clear and direct route to a tribunal hearing if that is what they prefer.
On 2 June 2008 HMRC published draft secondary legislation and a technical document setting out, among other things, how the new procedures might look. HMRC continue to discuss with external stakeholders. The Government aims to lay the affirmative Order (made under powers in section 124 Finance Act 2008) in the Autumn.
In addition HMRC (among other stakeholders) have been working closely with the Ministry of Justice on the new Tribunal Procedural Rules.
HMRC created a project team in April 2007 to ensure safe transition to the new system. Tony Verran and Helen Latham from the project team will give brief details on how the new process will work, emerging thoughts review in practice (drawing on early findings from the direct taxes trial in Manchester) and paper hearings.
What we would like from you on 2 October is:
