HM Revenue and Customs signals of softer approach
HM Revenue and Customs has surprised many in the marketplace by suggesting that tax investigators will take a "softer" approach to various tax disputes in the future. It is believed that a massive, and growing, backlog of legal action by HM Revenue and Customs is behind the new softer approach. So what does this mean for businesses and consumers?
It is highly likely that disputed tax cases will receive more favourable reviews at least in the short to medium term with the authorities suggesting that there is some middle ground which is open for negotiation. In many ways the tax investigators in recent times have taken an approach which suggests that a dispute is either "right or wrong" and there is no in between. In many cases the tax regulations in question can be interpreted differently by businesses and consumers and the tax people at HM Revenue and Customs.
Whether or not this "softer" approach to tax investigations in the future is here to stay remains to be seen but many consumers and businesses can breathe a sigh of relief, at least for the moment. The tax regulations in the UK are also under review with the coalition government believing they should be simplified as soon as possible.
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