CIOT pleased with HMRC tax decision

News that HM Revenue and Customs’ (HMRC) ability to use discretion when pursuing tax has been maintained in the Pre-Budget Report has been welcomed by the Chartered Institute of Taxation (CIOT).

Alistair Darling said in his speech to the House of Commons yesterday (December 9th) that HMRC will retain the ability to not go after tax payments in cases where such behaviour would be excessive and unfair.

Andrew Hubbard, president of the CIOT, described the announcement as ’very good news indeed’.

There had initially been plans to scram the power - prompting a campaign from the institute - and Mr Hubbard said that the government ’were caught by surprise by the strength of the reaction to their proposal to abolish this practice’.

He also praised policymakers for reversing their initial decision saying that it was to their ’great credit’ that they met with the CIOT and other tax bodies to discuss the issue.

In related news, HMRC recently announced penalties for those found evading tax payments have been increased.ADNFCR-2318-ID-19506434-ADNFCR