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When taxpayers become involved in a tax dispute with HMRC they may feel they are in a David and Goliath situation.
HMRC has all the resources and bottomless pockets to fund the case, whereas the taxpayer is inexperienced and frightened of running up large professional fees.
The law supposed to provide a level playing field for both sides. However, HMRC is proposing a change in the rules for tax enquiries which will give them the power to resolve or escalate elements of a case, but which doesn’t allow the taxpayer to do the same.
HMRC justify this change on the basis that some tax enquiries are very complex and involve lots of points of disagreement.
The tax treatment of a specific issue may be agreed by both sides, but the issue cannot be closed and the tax paid, while other issues are open and under discussion. Currently the taxpayer and HMRC may agree to make a joint referral of certain issues to the tax tribunal, but if the taxpayer does not agree those matters can’t be closed.
Read more here ---> http://www.accountingweb.co.uk/artic...quiries/571714
HMRC has all the resources and bottomless pockets to fund the case, whereas the taxpayer is inexperienced and frightened of running up large professional fees.
The law supposed to provide a level playing field for both sides. However, HMRC is proposing a change in the rules for tax enquiries which will give them the power to resolve or escalate elements of a case, but which doesn’t allow the taxpayer to do the same.
HMRC justify this change on the basis that some tax enquiries are very complex and involve lots of points of disagreement.
The tax treatment of a specific issue may be agreed by both sides, but the issue cannot be closed and the tax paid, while other issues are open and under discussion. Currently the taxpayer and HMRC may agree to make a joint referral of certain issues to the tax tribunal, but if the taxpayer does not agree those matters can’t be closed.
Read more here ---> http://www.accountingweb.co.uk/artic...quiries/571714