LITRG backs Lords’ concerns about HMRC

The Low Incomes Tax Reform Group (LITRG) has welcomed a new report by the House of Lords’ Economic Affairs Committee on HMRC powers and taxpayer safeguards. The Powers of HMRC: Treating taxpayers fairly concludes that the powers given to HMRC are ‘undermining the rule of law and access to justice in the current approach to tackling tax avoidance’.

Committee chair Lord Forsyth of Drumlean said: ‘HMRC is right to tackle tax evasion and aggressive tax avoidance. However a careful balance must be struck between clamping down and treating taxpayers fairly. Our evidence has convinced us that this balance has tipped too far in favour of HMRC and against the fundamental protections every taxpayer should expect.

‘Since 2012 perhaps due to reduced resources HMRC has been granted some broad disproportionate powers without effective taxpayer safeguards. High penalties designed to deter some taxpayers from continuing appeals...