Share on LinkedInShare on LinkedIn

ARTICLE · 08 AUGUST 2016

Weekly Tax Update - 1 August 2016

Smith & Williamson
Explore more from Smith & Williamson

The NAO has issued its annual report on HMRC. The report considers parts of HMRC's business including the objective of maximising revenues, progress in transforming the way it administer taxation and how well tax reliefs are managed.

United KingdomTax
Smith & Williamson
Smith & Williamson

1. GENERAL

1.1 NAO report on HMRC annual report and accounts

The National Audit Office (NAO) has issued its annual report on HMRC. The report considers parts of HMRC's business including the objective of maximising revenues, progress in transforming the way it administer taxation and how well tax reliefs are managed.

The NAO considered HMRC's objective of 'maximising revenues' (as opposed to its previous objective of 'maximising revenues due') and whether the extra costs of compliance justified the revenue brought in.

Two key areas of risk were highlighted by the NAO in relation to HMRC's progress in transforming the way it administers tax ie Making Tax Digital.

  • The first was optimism bias in its main assumptions. For instance, HMRC has assumed that taxpayers will move away from telephone and postal services and towards online services.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Frequently Asked Questions About IRS Clearance And Form 706-NA

UK executors and beneficiaries dealing with US assets face significant delays in obtaining IRS Transfer Certificates, with waiting times now extending to two or three years. This comprehensive FAQ addresses the critical questions surrounding Form 706-NA applications, US estate tax requirements, and the practical challenges of administering estates containing US shares and investments when the deceased was not a US citizen.
GlobalTax
Lester Aldridge LLP
Lester Aldridge LLP
Article

UK ‘Windfall’ Bank Tax Would Worsen An Already Complex System

UK banks face the prospect of a new windfall tax as campaigners push for additional levies on strong reported profits, while industry leaders warn of potential consequences for lending, investment, and the UK's position as a global financial centre. This analysis examines the practical implications of adding another layer to an already complex sector-specific tax regime that includes corporation tax, banking surcharge, and bank levy.
United KingdomTax
RPC
RPC
Article

Tribunal Limits HMRC's Schedule 36 Powers In Transfer Pricing Case

When HMRC issued an information notice demanding a UK subsidiary's US parent company financial statements in a transfer pricing enquiry, the First-tier Tribunal had to determine whether such documents were reasonably required and whether the subsidiary had the power to obtain them. The case examines the boundaries of HMRC's information-gathering powers and the practical limits of corporate group relationships.
European UnionTax
RPC
RPC
Article

Transfer Pricing Enquiries: HMRC’s Approach And Recent Cases

Transfer pricing litigation in the UK has historically been rare, but recent procedural cases reveal HMRC's increasingly aggressive approach to enquiries. With average enquiry durations now exceeding 40 months and transfer pricing yield surging to £3.4bn, understanding the legal boundaries of information requests and closure notice applications has become critical for multinational groups facing contentious disputes.
United KingdomTax
Macfarlanes LLP
Macfarlanes LLP