.png)
.png)
Other news
Investigation services
Readers will be aware that the provision of financial services is subject to authorisation procedures, and that various proposals for reform of the existing requirements are under consultation.
Other news
Investigation services
Readers will be aware that the provision of financial services is subject to authorisation procedures, and that various proposals for reform of the existing requirements are under consultation.
A new draft authorisation manual of the Financial Services Authority highlights the fact that, in general, insurance business is now subject to prior authorisation and regulation by the Authority. The relevant statutory instrument, which sets out the activities for which authorisation is required, does not, however, attempt an exhaustive definition of a 'contract of insurance' and therefore this remains a matter for interpretation of a case by case basis. However, the Financial Services Authority has set out the following view concerning what it describes as 'tax investigation schemes':
'When self assessment for income tax was first introduced, a number of providers set up schemes connected with their tax accounting and tax advisory services. In consideration of an annual fee, the provider undertakes to deal with any enquiries or investigations that the Inland Revenue might launch into the self assessment that the provider completes for the recipient. The event covered by these schemes (an investigation) is both uncertain and adverse to the interests of the recipient, who would, if the scheme were not in place, have to devote resources to dealing with the investigation. Accordingly, these schemes fall within the description of a contract of insurance: 1.3.4 G.'
Readers offering services which may be affected by the above interpretation may therefore wish to make representations on the matter to the Financial Services Authority in the hope that it can be persuaded to change its interpretation before it is formally published.
New year honours
Congratulations to all those connected with the tax profession whose work was recognised in the new year honours list. Luminaries include David Hartnett, policy and technical director-general, Inland Revenue, who has been made a Companion of the Order of the Bath, CB, and Professor John Tiley, professor, law of taxation at the University of Cambridge who was awarded a CBE for services to tax law. CBEs were also awarded to Hugh Burnard, head, Regional Business Services South, Customs, and to Michael Metcalfe, principal inspector, Inland Revenue.
John Andrews, chairman of the Low Incomes Tax Reform Group was awarded an OBE, along with the Rev Susan Ayling, policy adviser, Inland Revenue, Robert Bartlett, senior lawyer, Customs, Michael Cooper, head of minerals, Valuation Office, and Christine Fox, deputy director, Inland Revenue.
In addition, MBEs were awarded to several members of the revenue departments' support staff.
No joy for widowers
The Parliamentary Ombudsman, Ann Abraham, has decided that she must discontinue her investigations into complaints of unfair treatment from widowers. In a report on the treatment of widowers by the Revenue and the Department for Work and Pensions, the Ombudsman explains that a number of widowers had complained to the Ombudsman that these departments had acted unfairly by treating them in a less favourable way than other widowers who had taken their cases to the European Court. The widowers had tried to claim payments equivalent to widow's bereavement tax allowance and widows' benefits but their claims had been rejected.
The Ombudsman's office has received 66 complaints about the Revenue and a further six complaints about the Department for Work and Pensions. Investigations into two representative cases began. Some other widowers had previously brought judicial review proceedings against the Department for Work and Pensions and, later, others brought similar proceedings against the Revenue. These resulted in declarations of incompatibility between the European Convention on Human Rights and some domestic legislation. Because of appeals, domestic legal proceedings have not yet concluded.
In both her investigations, the Ombudsman found that, insofar as there was injustice to the complainants, it derived from legislation rather than from maladministration by the departments concerned. Legislation is not a matter for the Ombudsman and she therefore discontinued the investigations.
Equality under the Law, HC122 is published by The Stationery Office at £4.50 and is available from 10 December on the website www.ombudsman.org.uk.
(Source: Parliamentary Ombudsman Office press notice dated 9 December 2002.)
