The newspaper said HMRC intends to adopt a less combative approach to resolving tax disputes with business in order to “cut a mounting legal logjam and unlock billions of pounds tied up in court over avoidance.”
According to the FT, Dave Hartnett, permanent secretary for tax at HMRC, said there had been examples of officials being too “tough” in disputes over tax assessments. He is quoted as saying: “HMRC is packed full of very intelligent people but we are sometimes too black and white about the law.”
However, a HMRC spokesperson told International Adviser the FT report was inaccurate and that it would not be changing its approach to tax avoidance.
“There’s absolutely no question of HMRC softening its approach to tackling avoidance and HMRC will continue to ensure that everyone pays the right tax,” said the spokesperson.
“The point Dave Hartnett was making is that it’s right to see the big picture and not get bogged down in technical detail when resolving disputes but there will be no fast tracking of cases simply to reduce case loads.
“We will continue to rigorously defend the principles and intention behind the law whilst working with taxpayers to achieve the right outcome as quickly as possible.”
Mixed signals
Teh story adds to uncertainty around the Coalition Government’s stance on tax avoidance which has recently been fuelled by the appointment of Sir Philip Green to lead the Government Efficiency Review. Green’s tax status has been called in to question on previous occassions, with some accusing him of avoiding tax after signing over legal ownership of his business empire to wife Christina who lives in the tax haven of Monaco.
Officials are also meeting in Whitehall this month to debate proposals to introduce a general anti-avoidance rule (GAAR) to ensure individuals are not able to exploit loopholes. While there are arguments both for and against a GAAR, Deputy Prime Minister Nick Clegg recently said he wanted to “ensure wealthy individuals pay their fair share of tax”, hinting strongly in which camp he sits.
