Editorial

When is 'Independent' not 'Independent'? When it's HMRC! 

HMRC launched a pilot introducing the Alternative Dispute Resolution (ADR) service earlier this month. The ADR is a new way of resolving disputes between small and medium sized enterprises and HMRC.

In the News Release announcing the ADR pilot, an HMRC spokesman outlined the perceived benefits: “ADR will help SMEs resolve disputes without having to go to a tribunal – saving them both time and money. It is a good opportunity for HMRC to work together with our customers to potentially resolve disputes much earlier than at present."

Sounds quite good, doesn't it?

But wait a moment. The News Release points out that the ADR "...uses independent HMRC facilitators to resolve disputes between HMRC and customers during a compliance check but before a decision or assessment has been made."

Hang on - how can a HMRC facilitator be 'independent' if HMRC is a party to the dispute? What 'independent' presumably means in this context is that the facilitator was not initially involved in the dispute. Not quite my idea of independent.

Taxpayers hoping for a third party mediator will be disappointed. But perhaps they should not be surprised. The existing review system is 'independent' in a similar way.

Cynics might suggest that HMRC is seeking to ensure that the odds are stacked in their favour. I couldn't possibly comment!

Best wishes,           

Mark McLaughlin 

Managing Editor

To comment on this Editorial, please feel free to contribute to the corresponding article - Editorial: When is 'Independent' Not 'Independent'? When it's HMRC! - Ed