Consultation: Working with Tax Agents

This consultation might perhaps have been entitled ""Punishing Tax Agents", given its focus on HMRC's apparent view that there are lots of rogue agents out there who are not being effectively deterred by existing HMRC powers!

The publication of draft legislation during the consultation period caused quite a furore amongst tax professionals, especially as it seemed so out of tune with the December 9th Consultation paper (the second of two Condocs on this controversial subject). HMRC has now announced that the period for consultation on the draft legislation has been extended to April 28th. This effectively rules out the possibility of legislation being anounced in a March Budget as many had feared.

HMRC has also said that the option of "ex parte" hearings (in which HMRC apply to a Tribunal for a notice to supply documents etc, with no prior notice for the person affected) is no longer being pursued. That is something we welcome as ex parte hearings are inappropriate in many cases and the absence of an appeal mechanism seems to us to deny the affected party the right to a fair hearing. Nevertheless in the context of possible sanctions against tax agents we think HMRC must go further and accept that the agent who is the subject of an application to the Tribunal for a notice to produce documents etc should always have the right to attend that hearing and make his case.

Our response to the Con Doc has already been drafted and will be published on our website shortly. We do urge all tax agents to take the time to read this Consultation and make their views known as whatever form legislation ultimately takes, it may affect you. It is not so much a question of whether you have done something wrong, as what your rights would be if HMRC thought you had done something wrong.

For more information contact andy@avnvenustax.co.uk