Advance payment notices have changed the economics of tax disputes and may serve a useful function in tackling those who were playing the system, but the underlying legislation is insufficiently focused on the intended targets. Follower notices and GAAR penalty notices are likely to result in few affected taxpayers being prepared to continue tax disputes, even where they have a strong underlying case. As a result, those notices may lead to taxpayers being denied access to justice. Current taxpayer safeguards where these powers are used are neither independent nor accessible. A review is proposed to include consideration of a new form of independent safeguard.
Advance payment notices have changed the economics of tax disputes and may serve a useful function in tackling those who were playing the system, but the underlying legislation is insufficiently focused on the intended targets. Follower notices and GAAR penalty notices are likely to result in few affected taxpayers being prepared to continue tax disputes, even where they have a strong underlying case. As a result, those notices may lead to taxpayers being denied access to justice. Current taxpayer safeguards where these powers are used are neither independent nor accessible. A review is proposed to include consideration of a new form of independent safeguard.
Advance payment notices have changed the economics of tax disputes and may serve a useful function in tackling those who were playing the system, but the underlying legislation is insufficiently focused on the intended targets. Follower notices and GAAR penalty notices are likely to result in few affected taxpayers being prepared to continue tax disputes, even where they have a strong underlying case. As a result, those notices may lead to taxpayers being denied access to justice. Current taxpayer safeguards where these powers are used are neither independent nor accessible. A review is proposed to include consideration of a new form of independent safeguard.