1. The Institute of Chartered Accountants
in England and Wales ("ICAEW") is the largest accountancy
body in Europe, with more than 128,000 members. Three thousand
new members qualify each year. The prestigious qualifications
offered by the Institute are recognised around the world and allow
members to call themselves Chartered Accountants and to use the
designatory letters ACA or FCA.
2. The Institute operates under a Royal
Charter, working in the public interest. It is regulated by the
Department of Trade and Industry through the Accountancy Foundation.
Its primary objectives are to educate and train Chartered Accountants,
to maintain high standards for professional conduct among members,
to provide services to its members and students, and to advance
the theory and practice of accountancy, including taxation.
3. The Tax Faculty is the focus for tax
within the Institute. It is responsible for tax representations
on behalf of the Institute.
OF HM CUSTOMS
& EXCISE AND
1. The Chancellor of the Exchequer announced
in July 2003 a major review of the organisations dealing with
tax policy and administration. During the course of summer 2003
we met with HM Treasury officials involved in the review and in
October 2003 submitted a paper TAXREP 39/03 (available at http://www.icaew.co.uk/index.cfm?route=118543)
setting out our detailed comments and suggestions. The culmination
of the Review was the publication in March 2004 of the HM Treasury
Report Financing Britain's Future: Review of the Revenue Departments
which we will refer to as the O'Donnell Report.
2. The Committee held an evidence session
on 12 May 2004 in relation to the O'Donnell Report and we submitted
written evidence TAXREP 18/04 (available at http://www.icaew.co.uk/index.cfm?route=117822)
which is available on our website. The then Chairman of the ICAEW
Tax Faculty presented oral evidence before the Committee.
3. We submitted evidence to this Committee
in November 2006 prior to its evidence session on the 2005-06
accounts of HMRC which reflected its first 12 months' existence.
The annual report was coupled with the NAO report on those accounts.
Our evidence concentrated on the three main topics covered in
the NAO report: tax credits, PAYE and MTIC fraud.
4. We have concentrated our comments on
the key issues which we believe are fundamental to the future
success of HMRC.