The CIOT has responded to the HMRC call for evidence on raising
standards of tax advice, noting that ‘tax advice’ is not necessarily always
given by members of professional bodies. For example, ‘advice’ can be built
into digital systems or embedded in technology platforms – a factor in the
consultation that becomes particularly important given the proposed extension
of making tax digital in the next few years.
The CIOT notes that, by comparison with the professional conduct
in relation to taxation (PCRT), HMRC’s Standard
for agents is not comprehensive enough to provide a baseline standard
for all tax advisers. The Standard for Agents would need considerable expansion
to balance protection of revenue with protection of the taxpayer, according to
the CIOT – and it would be ‘easier and simpler’ to use PCRT instead.
The response notes that, although recent HMRC interventions
have made an impact, with a strong record of winning tax avoidance cases
leading to reduced avoidance activity, such interventions tend to focus on the
‘more egregious cases of bad behaviour’. Raising standards consistently would
benefit from a range of interventions including addressing behaviour which is
‘poor’ rather than ‘unscrupulous’. With increasing digitalisation, ‘hidden’ tax
advice in digital systems should also be brought into the scope of HMRC
interventions, to make sure that authorised technology does not allow errors.
The CIOT’s document also includes a copy of responses from
representative members of the Confédération
Fiscale Européenne (CFE Tax Advisers Europe) Professional Affairs
Committee, on the organisation and regulation of the profession in various EU
countries.
The CIOT has responded to the HMRC call for evidence on raising
standards of tax advice, noting that ‘tax advice’ is not necessarily always
given by members of professional bodies. For example, ‘advice’ can be built
into digital systems or embedded in technology platforms – a factor in the
consultation that becomes particularly important given the proposed extension
of making tax digital in the next few years.
The CIOT notes that, by comparison with the professional conduct
in relation to taxation (PCRT), HMRC’s Standard
for agents is not comprehensive enough to provide a baseline standard
for all tax advisers. The Standard for Agents would need considerable expansion
to balance protection of revenue with protection of the taxpayer, according to
the CIOT – and it would be ‘easier and simpler’ to use PCRT instead.
The response notes that, although recent HMRC interventions
have made an impact, with a strong record of winning tax avoidance cases
leading to reduced avoidance activity, such interventions tend to focus on the
‘more egregious cases of bad behaviour’. Raising standards consistently would
benefit from a range of interventions including addressing behaviour which is
‘poor’ rather than ‘unscrupulous’. With increasing digitalisation, ‘hidden’ tax
advice in digital systems should also be brought into the scope of HMRC
interventions, to make sure that authorised technology does not allow errors.
The CIOT’s document also includes a copy of responses from
representative members of the Confédération
Fiscale Européenne (CFE Tax Advisers Europe) Professional Affairs
Committee, on the organisation and regulation of the profession in various EU
countries.
