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The Chartered Institute of Taxation (CIOT) is to launch a detailed study of what a new Taxpayer's Charter should cover and how it could work in practice.

The CIOT agrees that a charter is no substitute for rights of taxpayers enshrined in statute.  Rights of appeal, time limits, and protection against disclosure of confidential information or legal advice, etc, should always be given proper statutory form.   However, the Institute also believes that a Taxpayer's Charter should also be drawn up to act as a highway code that safeguards the rights of the taxpayer.

Rob Ellerby, President of the CIOT says: “The Inland Revenue used to have a charter for taxpayers.  That dealt with service delivery.  To make sure that a charter or code works it needs to be seen rather like the Highway Code: laying down guiding principles that secure our rights.”

There are some more general broader rights for which a charter is the more suitable instrument. Examples include:

• the right to be believed in any information given to the Revenue authorities, unless there is evidence that what they are saying is not true;
• the Revenue authorities should collect the right amount of tax, not necessarily the maximum amount of tax which could be levied;
• taxpayers have the right to be represented at a meeting with the Revenue authorities by a person of their choice. 

Rob Ellerby adds: “There is a role for a Taxpayers’ Charter alongside statutory guarantees.  It is important that the charter or code has a clear basis in statute and is supported by all parties: taxpayers, Revenue officers and tax advisers.”

Concerns over safeguards for taxpayers were recently raised in relation to the HM Revenue & Customs document “Payments, Repayments and Debt”.

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Chartered Institute of Taxation