< Go Back Peers concerned that HMRC investigators are taking a more aggressive, unfair and disproportionate approach Posted: Mar 2, 2019A parliamentary committee called on HM Revenue and Customs (HMRC) to
undertake an inquiry into staff conduct after concluding some HMRC staff tackling tax avoidance and evasion did not meet the
department�s standards for behaviour. The House of Lords Economic
Affairs Committee's members said they �fully support HMRC�s
efforts to recover tax owed and deter tax avoidance and evasion" but
added "the need for better systems in place to identify and address
any problem behaviours as a matter of urgency, as there was evidence
that in investigation cases the behaviour of some HMRC staff
falls well below the standard set in HMRC�s own charter".
HMRC has recently been
given greater powers, and is being asked to collect more
tax with fewer staff but the report concluded
that the government does not appear to discriminate effectively between
the full range of behaviours and circumstances it describes as tax
avoidance, despite what it called �a clear difference in culpability
between deliberate and contrived tax avoidance by sophisticated,
high-income individuals, and uninformed or naive decisions by
unrepresented taxpayers�.
The peers concluded that �cultural drivers� to increase yield
�may have pressured staff to take a more aggressive approach to tax
collection, and in doing so impaired the ability to be fair to taxpayers
and act in accordance with charter values�. HMRC's charter required it to respect taxpayers and treat them as honest; provide a
helpful, efficient and effective service; be professional and act with
integrity; and deal with complaints quickly and fairly. The committee also heard concerns that there was no longer the right
balance of powers between taxpayers and HMRC, with instances of �mission
creep� where powers that were initially limited being subsequently
extended more widely, including the naming and shaming provisions.
Accelerated payment notices and follower notices were highlighted as examples of disproportionate powers, in particular
the lack of a right of appeal to the tax tribunal.
Ruth Stanier, HMRC�s director general of customer strategy and tax
design, advised the committee that 54% of complaints about HMRC are upheld.
Although peers acknowledged HMRC�s internal complaints
process can be effective, it also meant that, in a majority of cases, HMRC
staff are getting it wrong...even after internal reviews and assurance
processes.
The committee therefore called on HMRC to undertake �a full inquiry
into behavioural trends and cases of aggressive treatment� to ensure it
maintains the charter�s requirements. HMRC should then publish a clear statement of which leadership
behaviours, training or policy clarifications are required to ensure all
staff are aware of what is and is not acceptable behaviour towards
taxpayers, the report concluded.
Making a formal complaint against a large organisation like HMRC can be daunting but sometimes it is the right thing to do, if you're having trouble with the taxman, contact us in complete confidence.
