Review of HMRC Powers, deterrents and safeguards: Compliance
checks
Finance Bill 2009 will provide for an extension of the compliance checking framework introduced for certain taxes by Schedule 36-39 Finance Act 2008 to SDLT and SDRT (as well as to inheritance tax and petroleum revenue tax). A new penalty (£3k) will also be introduced where a person carelessly or deliberately provides inaccurate information or a document which provides an inaccuracy (previously provided for in s.98(2) Taxes Management Act 1970).
These changes have been subject to a recent consultation with a view to providing a modern framework of law and practice across all taxes for HMRC by introducing:
- aligned record keeping requirements;
- new information and inspection powers;
- better aligned claim and assessment time limits.
The changes are to be brought into effect by Treasury Orders. The record keeping requirements and information and inspection powers are expected to be effective from 1 April 2010 while the new claim and assessment time limits are not expected to become fully operative until 1 April 2011.
The effect of the changes should be fairly benign. In relation to SDLT, most of the new provisions are already contained in Schedule 13 Finance Act 2003 and so there should be need for major amendments to the current rules. It is also worth noting that no new record keeping requirement is being introduced for SDRT.
