Appendix 3: Call for evidence
The Finance Bill Sub-Committee, chaired by Lord Bridges of Headley, is appointed annually by the Economic Affairs Committee to consider the draft Finance Bill. The Sub-Committee focuses on issues of tax administration, clarification and simplification rather than on rates or incidence of tax.
The draft Finance Bill was published on 21 July 2020. The Sub-Committee’s inquiry intends to focus on three areas of the Bill in particular:
- New proposals for tackling promoters and enablers of tax avoidance schemes;
- New tax checks on licence renewal applications; and
- Amendments to HMRC’s civil information powers.
The Sub-Committee is also interested to hear views on the Government’s proposals on new notification requirements for uncertain tax treatments, and on the use of retrospective provisions in other areas of the draft Bill.
The Sub-Committee invites interested individuals and organisations to submit written evidence to this inquiry.
Written submissions are requested by 7 October 2020. After it has concluded its inquiry the Sub-Committee will make recommendations in a report to the House of Lords.
Areas of interest
The Sub-Committee welcomes views on any of the following questions relating to the areas of focus. In relation to the new proposals for tackling promoters, the Sub-Committee would welcome comments on the related calls for evidence issued by HM Revenue & Customs on raising standards in the tax advice market and on tackling disguised remuneration schemes, as well as the draft legislation itself and related consultation document.
The Sub-Committee is interested to know about the real-life experiences of individuals and organisations, as well as more general responses. There is no obligation to answer every question.
New proposals for tackling promoters and enablers of tax avoidance schemes
1.How effective are the existing powers of HMRC in tackling promoters and enablers of tax avoidance schemes?
2.What has been your experience of the Promoters of Tax Avoidance Schemes (POTAS) rules and the enablers rules in practice?
3.Are HMRC’s communications likely to be effective in informing potential scheme users about schemes, and so deter them from participating?
4.How effective will the proposed measures be against those who promote aggressive tax avoidance schemes, and in informing and deterring potential scheme users? What else could HMRC be doing in this area?
5.Are the safeguards being proposed sufficient to ensure an appropriate balance is struck between HMRC and taxpayer?
New tax checks on licence renewal applications
6.Are the proposals for tax checks on licence renewal applications fair and proportionate? How effective is the legislation likely to be, and is any amendment needed?
7.What is your view of the principle of conditionality and its use in the tax system?
8.How do you view the Government’s stated intention to extend conditionality to Scotland and Northern Ireland, as well as to other trades?
9.Could the problems this measure is designed to address have been tackled effectively by other means? If so, what are they?
Amendments to HMRC’s civil information powers
10.What is your view of the removal of the requirement to obtain tax tribunal approval before issuing a Financial Institution Notice? Are the safeguards promised instead adequate and, if not, what more should be done?
11.Is the scope of the new power in terms of the information to be reported to HMRC appropriate and sufficiently clear?
12.How can the need for adequate taxpayer safeguards and timely international exchange of information be balanced? What steps should be taken to ensure that taxpayer safeguards are not treated as dispensable when they make it more difficult to meet other obligations?
Other measures of interest
The Sub-Committee is also interested in the proposed introduction of new requirements for certain businesses to notify uncertain tax treatments, where the business considers that HMRC may have a different view of the tax treatment to its own. We welcome general views on this proposal.
In addition, the Government proposes to make certain technical amendments to the corporate interest restriction retrospective to 2017. The Sub-Committee is interested in views on the impact and appropriateness of proposed retrospective measures in the Finance Bill, in relation to uncertainty within the tax system.