During the Commons Second Reading of the Commissioners for Revenue and Customs Bill, it was announced that a review of the powers of the new combined department will start in January 2005. A consultation document will be published that will cover

• the suitability of the existing powers regimes
  
  
• new powers and practices that HMRC might need to allow it to deliver its targets for better customer experience, more efficient services and improved compliance
  
  
• the scope and benefits of consolidating the different interest charges and surcharge regimes for late payment, the different penalties and rights of appeal.

The Commissioners for Revenue and Customs Bill transfers the existing information and enforcement powers of HM Customs and Excise and the Inland Revenue to the new department of HM Revenue and Customs.

The Bill makes no significant changes to those powers and ring fences them so that they may only be used for the purpose for which they were originally intended. This means that HMRC officers will need to continue to use different powers in relation to different taxes and duties. For example, powers currently used by Customs and Excise to collect VAT will not be available to collect income tax.

It is the Government's intention that, following this initial consultation and the completion of the Bill's passage, officials in the new department will enter into more detailed discussions with representative bodies.

In addition to the consultation, to help explain the current powers regime to taxpayers and claimants, HM Customs and Excise and the Inland Revenue will produce an Advice Note covering the main areas of interaction - Income Tax, Corporation tax, VAT, Excise and Customs duties, PAYE and Tax Credits - and pointing taxpayers and claimants to information about other areas. It will be available to customers during inspections and visits, and will also be available to all on the HMRC website. The Advice Note is currently available in draft on Customs and the Revenue's web sites for comments.

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...back to 10 December 2004


Source:
www.gnn.gov.uk/Content/Detail.asp?ReleaseID=138630
www.inlandrevenue.gov.uk/news/hmrc-powers-rights.htm