HMRC deliberately dragging its feet closing enquiries

Taxpayers are waiting significantly longer for their tax enquiries to be closed putting them under greater stress and racking up their legal fees according to law firm RPC.

Taxpayers under enquiry by HMRC’s CSI (Charities Savings and International) and by Pensions units waited 303 days on average in 2015-16 for their enquiries to be closed up 24% on the previous year when the average wait was 243 days.

Concern is increasing that the Revenue may be using the tactic of dragging out enquiries to wear down taxpayers and force them to the negotiating tables.

The law firm says taxpayers may apply to the tax tribunal for a direction compelling HMRC to close an enquiry. This is likely to become more popular once the proposals in the Finance Bill 2017 which will permit partial closure notices to be issued become law.

RPC adds that accelerated...