4 July 2012
HMRC is proposing to revise Extra-statutory Concession (ESC) A19 and has published a consultation to seek views from interested parties with a liability to income tax.
ESC A19 sets out how HMRC may exercise its discretion not to collect income and capital gains tax which is lawfully payable, due to HMRC's delay in acting on relevant information in prescribed circumstances. This includes where the taxpayer identifies that HMRC did not properly deal with information received and the HMRC delay is the cause of an underpayment. HMRC is keen to ensure that this concession continues to apply in appropriate cases and that taxpayers understand it.
Following extended discussion with representative bodies HMRC has concluded that a consultation on ESC A19 now will be an opportunity to:
improve the clarity of ESC A19 so that it is more user-friendly and easily understood by taxpayers; help HMRC bring greater objectivity to ESC A19; and, help HMRC align ESC A19 with the HMRC Charter and ensure that it continues to be available in appropriate cases. The consultation aims are to present and seek views on a revised version of ESC A19 which: introduces the concept of 'taxpayer responsibilities' in respect of ESC A19 claims against the recovery of underpaid income tax in line with the HMRC Charter; and removes reference to capital gains tax, on the basis that the requirement for individuals to self-assess for capital gains makes ESC A19 redundant.
The consultation will run until 24 September 2012 and the CIPP Policy team will be looking at the document in detail and will publish a survey to gather member’s views if deemed necessary.
HAVE YOUR SAY ON EXTRA STATUTORY CONCESSION A19 REVIEW
21 August 2012
HMRC are looking for views on their proposals to improve the usability and understanding of the ESC A19 for taxpayers and employers.
HMRC have recently opened a consultation on the Extra Statutory Concession (ESC) A19 and believes that this consultation will provide it with an opportunity to:
Improve the clarity of ESC A19 to improve its usability and ensure that it is better understood by taxpayers; Help in bringing “greater objectivity” to the use of ESC A19; and Assist in the alignment of ESC A19 with the HMRC Charter, whilst ensuring that it continues to be available where appropriate.
HMRC have included within their consultation document revised text for ESC A19 and plan to replace the current text of ESC A19.
The consultation is asking you views as to the proposed changes specifically around:
1. The removal of the term “reasonable believe” to be replaced with an objective test based around ‘taxpayer responsibilities’
CIPP Policy News Journal
12/04/2013, Page 158 of 362
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