Friday 13 November 2009

The taxman asks for trust from businesses

Having a tax man call at your business premises is about the same as having a police car draw up on your home’s driveway.

What have I done wrong?
What have the kids (staff) done wrong?

It’s natural to feel guilty even if you haven’t done anything wrong, and we lack a certain trust for such figures of authority.

Well the HMRC is asking business people to trust them and to allow a tax man to join staff to work in their offices to get a better understanding of the commercial world.

Dave Hartnett of the HMRC is writing to major companies and firms of tax advisers to ask them to consider taking in tax officials on secondment. While delivering the Hardman lecture at the Institute of Chartered Accountants on Wednesday night, Mr Hartnett said: “I urge you to take many more of our people on secondment, to trust them and to work with us to improve the operation of tax administration.”

It seems there is some annoyance within the HMRC that they take business people in on secondment to understand the workings of the tax office, but there is little reciprocation.

Speaking to tax advisers, he said: “Some of you say that clients are just not happy to see tax officials working in your firms. I say be firm with the clients and trust our people as we trust yours.”

Mr Hartnett added: “It is not enough for tax advisers to say they want to make the UK a global centre for business while at the same time helping corporations and businesses to exit. Of course business needs the freedom to come and go, but there is a trust issue here which leads my colleagues to worry about some of the representations they receive.”

It will be interesting to see what understanding follows as a result of any such secondments.

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