House of Lords Economic Affairs Finance Bill Sub-Committee to ask: Is HMRC abusing its powers?

Business representatives, software developers and legal experts are among two panels of witnesses due to give evidence on Monday 15 October 2018 to the House of Lords Economic Affairs Finance Bill Sub-Committee.

These evidence sessions are part of the Sub-Committee’s inquiry into the Draft Finance Bill 2018.

At 4.05pm the Committee will focus on Making Tax Digital and hear from:

• Mike Cherry OBE, National Chairman, Federation of Small Businesses
• Siôn Lewis, CEO, IRIS Accountancy Solutions
• Paul Morton, Tax Director, Office for Tax Simplification.

Questions are likely to include:

• Are businesses, Her Majesty’s Revenue and Customs (HMRC) and software companies ready for the full introduction of Making Tax Digital for VAT in April 2019?
• How effectively has HMRC communicated with taxpayers and agents about Making Tax Digital for VAT?
• The success of the Making Tax Digital for VAT in April 2019 depends on the software industry delivering reliable and easy to use solutions to their customers. Has this happened?
• What further evidence is emerging, as businesses prepare for April 2019, of the costs and benefits of mandatory digitalisation? 

At 4.50pm, the Sub-Committee will focus on HMRC’s powers and hear evidence from:

• Lydia Challen, Chair of the Tax Law Committee, Law Society of England and Wales
• Jason Collins, Partner, Pinsent Masons LLP
• Malcolm Gammie QC, Chair of the Tax Law Review Committee, Institute of Fiscal Studies.

Questions are likely to include:

• What powers granted to HMRC in the last few years give you greatest cause for concern? 
• How can tax avoidance be tackled effectively without undermining safeguards for taxpayers?
• What changes have you seen in HMRC’s approach to taxpayers’ affairs in the last 10 years? Have taxpayers’ safeguards kept pace?
• Clauses in the draft Finance Bill would extend HMRC’s time limit for dealing with offshore matters to 12 years. Is this proportionate?
• What steps, principles or practical safeguards will be necessary to ensure that there is a balance between the powers of HMRC and the rights of taxpayers?