Committee calls for review of UK tax authority’s powers
05 Dec 2018
A House of Lords report has condemned powers given to HM Revenue & Custom (HMRC) to combat tax avoidance, calling them 'unfair'.
A report published by the House of Lords Economic Affairs Committee says that HMRC's approach to cracking down on tax avoidance is disproportionate and overly aggressive, adding that the tax authority is “not sufficiently accountable” for its treatment of taxpayers and should “have its powers reduced to be more fair”.
Lord Forsyth, the committee’s chair, says that, whilst HMRC is right to tackle tax evasion and aggressive avoidance, “a careful balance must be struck between clamping down and treating taxpayers fairly.”
He adds: “Our evidence has convinced us that the balance has tipped too far in favour of HMRC and against the fundamental protections every taxpayer should expect.”
The committee says the creation of an independent body to oversee arrangements for HMRC should be considered.
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