Editorial

HMRC Going Soft? Don't Count on It!

Reports in the press this week suggested that HM Revenue & Customs (HMRC) would be softening its approach to tax avoidance, following a newspaper interview with Dave Hartnett, Permanent Secretary for Tax at HMRC. This report was swiftly followed by a statement from an HMRC spokesman, stating that there was no question of HMRC changing its approach to tax avoidance.

Following the introduction of a new, expansive range of HMRC powers over the last couple of years or so, it was always difficult for me to envisage HMRC relenting in pursuit of "the right amount of tax". In fact, Mr Hartnett was apparently referring to how HMRC officials apply the law when dealing with disputes between HMRC and taxpayers.

At one extreme, unfortunately I have to concede that the days of picking up the phone to the local inspector and resolving issues quickly and efficiently using a little 'give and take' and a measure of common sense have probably gone forever.

However, at the other extreme, if Mr Hartnett was referring to HMRC's 'litigation and settlement strategy' and a more flexible approach in the future, this should be warmly welcomed. If it happens, the result should be less tax disputes reaching the tax tribunal and the courts, which has to be good news all round.

Best wishes,

Mark McLaughlin

Managing Editor