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The Inland Revenue has laid regulations before Parliament to support the Internet Service for pay-as-you-earn (see 'Internet service for PAYE', Taxation, 8 March 2001 at page 540).
The regulations are the Income Tax (Electronic Communications) (Miscellaneous Amendments) Regulations 2001 (SI 2001 No 1081). Copies of these regulations are available from The Stationery Office, and are also on the Inland Revenue website: www.inlandrevenue.gov.uk.
The Inland Revenue has laid regulations before Parliament to support the Internet Service for pay-as-you-earn (see 'Internet service for PAYE', Taxation, 8 March 2001 at page 540).
The regulations are the Income Tax (Electronic Communications) (Miscellaneous Amendments) Regulations 2001 (SI 2001 No 1081). Copies of these regulations are available from The Stationery Office, and are also on the Inland Revenue website: www.inlandrevenue.gov.uk.
They also amend the regulations for the Internet service for self assessment. The amendments mean that a taxpayer will be able to challenge the record on the Revenue's computer system by producing evidence that what is recorded is incorrect, or not what was sent.
(Source: Inland Revenue press release dated 20 March 2001.)
Pension scheme tax review
The Revenue has announced that it is to review the taxation of pension schemes. Dave Hartnett, director of policy at the Inland Revenue, will sponsor the project and the National Association of Pension Funds, the Association of British Insurers and the other main pension bodies will participate in a steering group to oversee the project, which will report back to Ministers in February 2003. The review team will:
* review the tax rules and administration associated with defined benefit occupational pension schemes;
* report regularly to Ministers on the development of a tax-revenue neutral package of options to simplify defined benefit pension scheme administration;
* support Ministers in bringing forward any necessary legislative changes to implement the simplification package.
In doing so, the team will have regard to:
* anticipated taxflow and wider economic effects of regulatory impact;
* any interaction with the defined contribution tax régime; and
* the effect on present and future pensioners.
In particular the team will:
* review the Occupational Pension Schemes Practice Notes looking for opportunities to abolish, ease, simplify or streamline existing rules, specifically including retained benefits, pensions in payment, death benefits, part timers and definition of final salary within a tax revenue neutral package;
* reformulate the Practice Notes to reflect the principles that guide the Board of Inland Revenue when exercising its discretion;
* consider how the Revenue and pensions schemes communicate, including information returns and the means by which schemes receive tax approval; and
* consider the ways in which simplification can be maintained in future.
(Source: Inland Revenue press release dated 15 March 2001.)
Double taxation relief
The Government has made and laid before Parliament regulations governing the treatment of dual resident companies for the purposes of mixing dividends paid between companies resident in the same country. In addition, the Inland Revenue has made and laid before Parliament regulations governing the surrender of foreign tax eligible for relief against United Kingdom tax round a group of companies. Both sets of regulations come into effect for dividends paid to the United Kingdom on or after 31 March.
The regulations are The Double Taxation Relief (Surrender of Relievable Tax Within a Group) Regulations 2001/1163 and The Double Taxation Relief (Taxes on Income) (Underlying Tax on Dividends and Dual Resident Companies) Regulations 2001/1156.
Draft legislation covering the double taxation provisions has been published in the Finance Bill.
(Source: Inland Revenue press release dated 26 March 2001.)
Carbon dioxide emission data
The availability of accurate carbon dioxide data was discussed at a meeting held at the office of the Society of Motor Manufacturers and Traders Ltd in London on 1 March 2001. Various interested parties attended including the Inland Revenue. As a result of the discussions, the following was established:
* For cars first registered between 1 January 1998 and 28 February 2001, under an agreement with the Revenue, the Society of Motor Manufacturers and Traders is providing a carbon dioxide emissions enquiry service on the Internet. The site can be accessed through the Society's site at www.smmt.co.uk/co2/co2.asp. The service is available for single enquiries and will be on line for a limited period. The Society has been checking and proofing data to resolve any discrepancies. The data will shortly be audited with the Vehicle Certification Agency. Following completion of the audit, and any corrective actions, it will be considered as definitive by the Revenue for car benefit tax purposes.
* For cars registered on or after 1 March 2001, the definitive carbon dioxide emissions value for benefit in kind taxation will be that shown on an individual car's registration document (form V5).
* All car buyers and users should be aware of all of the available data before choosing a new car. For some, yet to be launched, new car models, definitive carbon dioxide information may not be available. In such cases car buyers and users must accept some risk if they accept indicative carbon dioxide information.
Both the Vehicle Certification Agency and the Society of Motor Manufacturers and Traders are working responsibly to ensure that accurate carbon dioxide data is made available in a timely manner to support consumer choice.
(Source: Inland Revenue website notice dated 27 March 2001.)
Expenditure plans
The Inland Revenue has published its departmental report for 2001-2004 setting out its plans and expenditure. It also looks at performance, and in this regard, Nick Montagu CB in his introduction says that the department is 'on course to collect more tax and National Insurance contributions than ever before' at a cost of 1.1p for every pound collected.
However, perhaps a notable comment made by Nick Montagu in his introduction is the acknowledgement that 'not all our customers have the facility or the inclination to do business' with the Revenue electronically. Given that so much official Revenue information is disseminated over the Internet, it is refreshing that the Revenue realises that not everyone has access to or wishes to own a computer. The Revenue, according to Nick Montagu, wishes to be seen as an 'enabling as well as a regulating department', and intends to provide the widest possible choice for taxpayer transactions.
This apart, there is very little that is startling in the expenditure plans. A new feature is the inclusion of a medium-term strategy which contains some grand phrases such as, the need to take into account 'the external context within which the department must operate and to which it must respond' and 'the shape the department needs to adopt so that it can meet' its various commitments. The strategy also refers to performance targets, and the need to strive to improve compliance, Revenue productivity, taxpayers' 'overall opinion of us'.
Just in case there is a reader who is inspired to read on, the Inland Revenue's Government Expenditure Plans 2001-2004 Cm 5118 costs £9.95 and is available from the Stationery Office.
