Association of Accounting Technicians response to Tackling the hidden economy Extension of datagathering

Similar documents
Association of Accounting Technicians response to HM Revenue and Customs consultation Tackling tax evasion: legislation and guidance for a corporate

Association of Accounting Technicians response to Tackling offshore evasion: A new criminal offence for offshore evaders

Association of Accounting Technicians response to FRED 59 Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and

Association of Accounting Technicians response to Tackling offshore tax evasion: Civil sanctions for enablers of offshore evasion

AAT RESPONSE TO THE HMRC CONSULTATION ON EMPLOYEE BENEFITS AND EXPENSES TRIVIAL BENEFITS EXEMPTION

AAT RESPONSE TO THE HMRC CONSULTATION ON LEGISLATING EXTRA STATUTORY CONCESSION D33

Association of Accounting Technicians response to IASB s Exposure Draft Classification and Measurement of Share-based Payment Transactions - Proposed

Association of Accounting Technicians response to HMRC consultation document Tackling the hidden economy: Sanctions

AAT RESPONSE TO THE HMRC CONSULTATION ON OFFICE OF TAX SIMPLIFICATION: REVIEW OF UNAPPROVED SHARE SCHEMES

Association of Accounting Technicians response to HMT & HMRC consultation Reforms to corporation tax loss relief: consultation on delivery

Association of Accounting Technicians response to Workplace Pensions Automatic Enrolment: simplifying the process and reducing burdens on employers

Association of Accounting Technicians response to Intermediaries Legislation (IR35) Discussion Document

Association of Accounting Technicians response to the IASB Exposure Draft on Clarifications to IFRS 15

Association of Accounting Technicians response to HMRC s technical consultation Tackling disguised remuneration

AAT RESPONSE TO HMRC CONSULTATION DOCUMENT ON TACKLING OFFSHORE TAX EVASION: STRENGTHENING CIVIL DETERRENTS (RELEASED 19 AUGUST 2014)

Association of Accounting Technicians response to the HMRC Consultation on salary sacrifice for the provision of benefits in kind

Association of Accounting Technicians response to Exposure draft: Conceptual framework for financial reporting

Money. Association of Accounting Technicians response to HMRC s consultation on Making Tax Digital sanctions for late submission and late payment

Association of Accounting Technicians response to FRED 58 Draft FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime

Association of Accounting Technicians response to the Office of Tax Simplification Discussion Paper: Lookthrough taxation

Association of Accounting Technicians response to Individual Savings Accounts: transfer of benefits to surviving spouses or civil partner upon death

AAT RESPONSE TO THE HMRC CONSULTATION ON EMPLOYEE BENEFITS AND EXPENSES EXEMPTION FOR PAID OR REIMBURSED EXPENSES

AAT RESPONSE TO HMRC CONSULTATION DOCUMENT ON STRENGTHENING THE TAX AVOIDANCE DISCLOSURE REGIMES

1 EXECUTIVE SUMMARY AND OVERVIEW

Association of Accounting Technicians response to the Department for Work and Pensions consultation Security and Sustainability in Defined Benefit

Association of Accounting Technicians response to the Office of Tax Simplification:

Association of Accounting Technicians response to the Financial Reporting Council (FRC) consultation document Improving the Statement of Cash Flows

Association of Accounting Technicians response to Law Commission Consultation on Anti-Money Laundering: the SARs regime

Association of Accounting Technicians response to HM Treasury Call for Evidence on the Value Added Tax (VAT) Registration Threshold

Association of Accounting Technicians response to the HM Treasury and Department for Work and Pensions Public financial guidance review: consultation

Association of Accounting Technicians response to HMRC penalties: a discussion document

Business Tax (FA2016)

Tackling offshore tax evasion A requirement to notify HMRC of offshore structures: CIOT Comments 27 February 2017

Association of Accounting Technicians response to the Spring Budget 2017

Appeals Regulations. AAT is a registered charity. No

Licensing. AAT is a registered charity. No

1 Introduction. 2 Executive summary

Insolvency. AAT is a registered charity. No

Indirect Tax (FA2016)

Licensed Bookkeeper application

STEP response to HMRC s consultation on Tax Avoidance Involving Profit Fragmentation.

1 Introduction. 2 Executive summary

This exam paper is in two sections. You should try to complete all tasks in both sections.

Personal Tax (FA2016)

Suitability for membership

Licensed Accountant application

Partnerships: A review of two aspects of the tax rules 2) Profit & Loss Allocation Schemes Response by the Chartered Institute of Taxation

AAT Licensed Accountant application form

Draft FRS The Financial Reporting Standard applicable to the Micro-entities Regime

VAT REGISTRATION THRESHOLD: CALL FOR EVIDENCE

Business Tax (FA2015) Trading Losses

STEP welcomes the opportunity to respond to the consulation paper published on 20 April 2016.

Chapter 5: The consequences of not correcting Penalties Models

AUTUMN BUDGET 2017: FUTURE TAX CHANGES

Elements of costing (ELCO) Question and answer book

Code of Professional Ethics: independence provisions relating to review and assurance engagements

Business Tax: Maria s scenario Answer book

1 Introduction. 2 Executive summary

UK SUMMER BUDGET July 2015

Recovering the costs of the Office for Professional Body Anti-Money Laundering Supervision (OPBAS): fees proposals

Written evidence submitted by Association of Accounting Technicians (ATT) (FB01)

Off Payroll Working in the Public Sector Channel 4 response

Penalties for enablers of defeated tax avoidance HMRC s draft guidance Comments from the Chartered Institute of Taxation

The Gibraltar Financial Services Commission. Consultation Paper Regulation of personal pension schemes

RUTLAND COUNTY COUNCIL INTERNAL AUDIT ANNUAL REPORT 2016/17

Code of Professional Ethics

Transforming bailiff action, Ministry of Justice consultation paper CP5/2012

Code of Professional Ethics

Corporate Governance Requirements for Investment Firms and Market Operators 2018

C L A R I D E N October 2014

Global Infrastructure Investor Association Promoting Private Investment in Infrastructure

Finance Bill Clause 47 and Schedule 8. Enforcement by Deduction from Accounts. Comments by the Chartered Institute of Taxation (CIOT) Overview

VIII. This chapter discusses international aspects of. Cross-Border Supervision of Banks. Evolution of Best Practices

DOTAS: VAT. Etienne Wong Old Square Tax Chambers

UniCredit Group Tax Strategy

Continuing Professional Development (CPD)

Can you do the SaMBA? (The UK s Small and Micro-Business Assessment)

Response to the HM Revenue & Customs consultation on whether to bring illegal waste sites within the scope of the Landfill Tax, March 2017

Stamp Taxes on Share Consideration Rules. Response by the Chartered Institute of Taxation

Autumn Budget 2017: The Budget, in full

Making tax digital: Transforming the tax system through the better use of information

1 Executive Summary UK REPRESENTATIVE BODY ON THE CONFEDERATION FISCALE EUROPEENNE

Tax Enquiries: Closure Rules Response from the Low Incomes Tax Reform Group (LITRG)

Personal Tax (FA2016) work-place scenario Answer book Anthony Jerrold. May AAT is a registered charity. No

Final Accounts Preparation (FAP)

Taxing gains made by non-residents on UK immovable property

2017 group tax supplement

the second budget report 2015

TAXING GAINS MADE BY NON-RESIDENTS ON UK IMMOVABLE PROPERTY

Management Accounting: Costing (MMAC)

This document is a record of the information provided in the Annual Return 2016.

Written evidence submitted by Chartered Institute of Taxation (clauses 79 to 80 offshore time limits) (FB02e)

VAT and Vouchers Response by the Chartered Institute of Taxation

Transparent, sophisticated, tax neutral

Bar Council response to the HMRC consultation on the Draft International Tax Compliance (Client Notification) Regulations 2016

Board of Management Audit Committee

Response to the Consultation by Commission Services on legislative steps for the Packaged Retail Investment Products (PRIPs) initiative

Proposal for a COUNCIL DIRECTIVE

HMT: Reform of the substantial shareholdings exemption The Law Society's response August 2016

Regulating Defined Benefit pension schemes. Buck Consultants response to consultation by the Pensions Regulator

Transcription:

Association of Accounting Technicians response to Tackling the hidden economy Extension of datagathering powers 1

Association of Accounting Technicians response to Tackling the hidden economy Extension of data-gathering powers 1. Introduction 1.1. The Association of Accounting Technicians (AAT) is pleased to have the opportunity to respond to the consultation document on the Tackling the hidden economy Extension of data-gathering powers (condoc), released on 22 July 2015. 1.2. AAT is submitting this response on behalf of our membership and from the wider public benefit of achieving sound and effective administration of taxes. 1.3. AAT has added comment in order to add value or highlight aspects that need to be considered further. 1.4. AAT has focussed on the operational elements of the proposals and has provided opinion on the practicalities in implementing the measures outlined. 1.5. Furthermore, the comments reflect the potential impact that the proposed changes would have on SMEs and micro-entities, many of which employ AAT members or would be represented by our operationally skilled members in practice. 2. Executive summary 2.1. AAT welcomes this consultation which proposes to legislate to extend HMRC s datagathering powers to obtain data from business intermediaries and electronic payment providers (7 and 8, condoc). 2.2. AAT has some concerns where the proposal increases the risk of inappropriate disclosure of personal data (3.8 and 3.9, below). 2.3. AAT recommends that HMRC requests for data should be limited to one request per data-holder per year in addition to the safeguards outlined in 37 and 38 (condoc) in order to minimise the administrative burden borne by the data-holder, for the reason outlined in 3.2 (below). 2.4. The approach outlined above (2.3) would not restrict HMRC s use of the power as it would be entirely possible for them to request information spanning more than one year. 2.5. Additionally, AAT considers that the definitions of what constitutes a register and an intermediary should both be tightly defined for the reasons respectively outlined in 3.9 and 3.10 (below). 2

3. AAT response to the consultation document on the Tackling the hidden economy Extension of data-gathering powers Question 1: Are there other data-holders or business models who should be included within these changes? 3.1. AAT does not have suggestions in respect of other data-holders or business models that should be included within these changes. Question 2: Do you have any views on how frequently HMRC should request data from these data-holders? 3.2. Given that the intention is to legislate to extend access to two similar sorts of data to help tackle the hidden economy as outlined in 8 (condoc), where these changes will apply to data held by electronic payment providers and business intermediaries, AAT considers there is a clear need for an additional safeguard to those set out at 37 and 38 (condoc) whereby HMRC s requests for data should be limited to one request per dataholder per year in order to minimise the administrative burden borne by data-holders. 3.3. If adopted, AAT s recommendation would enable HMRC to request bulk data in the prescriptive format (35, condoc) but alleviate data-holders from additional and, or, unreasonable demands to provide further subsets of the bulk data. 3.4. AAT does not consider that this would restrict HMRC s use of the power as the department could request information that could span a year or more. Question 3: Are there any other types of payment providers that should be included in the scope of the legislation? 3.5. AAT has not identified any other types of payment providers that should be included in the scope of the legislation. Question 4: Do you agree that HMRC should be able to require information from an indirect payment provider? Are the Financial Services (Banking Reform) Act 2013 definitions fit for the purpose of defining data-gathering powers? 3.6. It should be noted that AAT is responding to this consultation as a representative body and from an operational perspective rather than from the robustness of the legal drafting point of view. 3.7. However, given that 28 (condoc) states The definition above does not include indirect payment service providers AAT considers that the current definition should be amended to include the definition of indirect payment service providers. 3.8. HMRC should be able to require information from an indirect payment provider, however, that information should not include personal data. Question 5: HMRC would welcome your views on: a. Expanding or better defining the register provisions; or b. Introducing a definition for intermediaries to ensure legislation covers these as data-holders. 3.9. AAT recommends that the register is better defined rather than expanded as the latter increases the risk of the legislation being drafted too widely and extended to businesses that the government never intended to be included in these provisions. 3.10. In addition to the comment above (3.9), AAT recommends the definition of intermediary should be tightly worded in order to avoid the inclusion of entities that were not intended to be the subject of these provisions. 3

Question 6: How can HMRC minimise any costs to business in complying with these new requirements? 3.11. HMRC can minimise the costs to businesses by being flexible in how the data might be supplied and which is outlined in 35 (condoc) as, electronically and in a standardised format to meet high quality and accuracy standards. Question 7: Do you have any views on the approach HMRC should take to dataholders who may have no or only limited presence in the UK? 3.12. HMRC should take a strong approach to data-holders who may have no or only limited presence in the UK (e.g. the ability to trade in the UK should be curtailed for non-resident data-holders that do not provide the data requested). Otherwise, data-holders in the UK may decide to follow suit and move their businesses offshore. AAT acknowledges that it may be difficult for HMRC to tackle non-resident data-holders that have no presence in the UK because it may be difficult to apply effective sanctions. Question 8: Do you agree that the existing safeguards are sufficient? 3.13. AAT believes the existing safeguards are not sufficient and has recommended an additional safeguard above (3.2). 4. Conclusion 4.1. AAT recommends that HMRC s requests for data should be limited to one request per data-holder per year in addition to the safeguards outlined in 37 and 38 (condoc) in order to minimise the administrative burden on the data-holder, for the reason outlined in 3.2 (above). 4.2. AAT recommends that the register and the definition of intermediary are both tightly defined for the reasons respectively outlined in 3.9 and 3.10 (above). 5. About AAT 5.1. AAT is a professional accountancy body with over 49,500 full and fellow members and 82,400 1 student and affiliate members worldwide. Of the full and fellow members, there are over 4,200 Members in Practice who provide accountancy and taxation services to individuals, not-for-profit organisations and the full range of business types. 5.2. AAT is a registered charity whose objectives are to advance public education and promote the study of the practice, theory and techniques of accountancy and the prevention of crime and promotion of the sound administration of the law. 1 Figures correct as at 30 Sept 2015 4

6. Further information If you have any questions or would like to discuss any of the points in more detail then please contact AAT at: email: consultation@aat.org.uk and aat@palmerco.co.uk telephone: 020 7397 3088 Aleem Islan Association of Accounting Technicians 140 Aldersgate Street London EC1A 4HY 5