• There are ten live HMRC CCO investigations, and an additional 22 opportunities under review across ten different business areas, which include financial services, oils, construction, labour provision and software development • These opportunities and investigations relate to a variety of HMRC customer groups, ranging in size from small businesses up to the UK’s largest organisations • HMRC has continued to progress CCO investigations and opportunities, in spite of coronavirus, but only where it has been safe to do so for both HMRC and its customers HMRC wishes to make it clear that the CCO is not just about investigations and prosecutions, and runs deeper than that, aiming to change industry practices and attitudes towards risk to try to prevent the facilitation of tax fraud from happening in the first instance. The concept of Reasonable Preventative Procedures (RPPs) was introduced within the CCO, and relates to processes which help a corporate to stop its associated persons from aiding tax fraud, and can be used as a defence against a CCO prosecution. RRPs are not a new concept, and the majority of corporates will already have these processes in place. The idea is that by embedding, regularly reviewing, and adapting RRPs in order to address tax fraud facilitation risks, the corporates will eliminate the chances of their associates facilitating tax fraud, supporting compliance in their industry sector.
HMRC is asking businesses to consider how the CCO may affect them, and how their RRPs look. The approach taken to the CCO and RRPs could potentially help reduce fraudulent behaviour and target tax evasion risks.
Government guidance on the topic is available, ‘Tackling tax evasion: Government guidance for the corporate offences of failure to prevent the criminal facilitation of tax evasion’.
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HMRC is seeking views on its development of an Application Programme Interface (API) in relation to Corporate Interest Restrictions (CIR) 8 September 2020
HMRC is seeking views on its development of an Application Programme Interface (API) in relation to Corporate Interest Restrictions (CIR).
Following on from feedback from users, HMRC is planning to develop an Application Programme Interface (API) to support the service which allows companies to determine whether they need to restrict their group interest deductions and make a return to HMRC. To aid with development, HMRC is seeking views on development of this new API system. Corporate Interest Restrictions (CIR) became effective from 1 April 2017, and applies to corporate entities. In specific circumstances, it will restrict a group’s deductions for interest expense and other financing costs for Corporation Tax purposes, to an amount that is proportionate with taxed UK activities.
The API will run alongside an improved user interface and it is currently being developed with commercial software providers, within a controlled environment. The following functionalities are being tested:
• • • •
Submit a full return
Submit an abbreviated return Appoint a reporting company Revoke a reporting company
Additional information regarding the new API in development for CIR returns can be found at GOV.UK. HMRC has already started engaging with software providers, and would like to raise wider awareness.
Feedback would be welcomed by HMRC, to help with the development of the new API interface and specifications. Please email feedback to SDSTeam@hmrc.gov.uk by 9 October 2020.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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