In its response to the “Call for evidence: modernising the collection of tax debt from non-paying businesses”, the Institute says HMRC needs to focuses on making more effective use of its existing powers for debt collection and also highlights the important role that agents already play in assisting taxpayers to meet their compliance and filing obligations. The submission also stresses that there should be no direct role for agents in the collection of tax debt.
Overall, the Institute made the following recommendations:-
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HMRC needs to consider more effective use of its existing powers for collection of tax debt;
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This should include considering how existing powers can be further extended, with appropriate taxpayer safeguards built into these extended powers where necessary;
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The introduction of any new powers should be postponed until HMRC establishes a compelling case that the use of existing powers has failed;
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HMRC should overtly recognise the key role many agents already play in advising taxpayers and businesses of their tax filing and payment compliance obligations; and
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Tax agents should not have a formal role in the collection of outstanding tax debt.
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