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HMRC Reviewing Risk-Based Company Tax Oversight

Thursday, October 12, 2017

The Confederation of British Industry has encouraged companies to engage with the UK tax authority on its review into its Business Risk Review Model.

Over the past ten years this model has been used by HM Revenue and Customs to assess where a large business sits on the compliance spectrum, and accordingly has been used to deploy resources to "man-mark" large business.

In launching a review of the system, HMRC has noted a decreasing trend in the use of avoidance schemes but an increase in disputes about the interpretation or application of tax law.

Commenting on an ongoing consultation, which is to run until December 6, the CBI said: "To help strengthen the 'co-operative compliance' relationship with large business, HMRC thought this was a good time to start a conversation about the Business Risk Review Model. To shift compliance behavior, HMRC are interested to know what might influence businesses to adopt a low-risk strategy, such as a quicker clearance procedure, or real-time decisions on transactions."

Separately, the CBI has been liaising with HMRC's senior leadership team, culminating in a meeting between CBI Director General, Carolyn Fairbairn, and HMRC's Permanent Secretaries Edward Troup and Jon Thompson."

"Many large businesses have identified a deterioration in the service they experience with HMRC, citing delays or an unwillingness to provide businesses with the certainty they need to get on and do business. The CBI is keen to see a reset in the 'co-operative compliance' relationship, to reduce business uncertainty."