Rethink urged on scrapping tax safety net
According to campaigners the withdrawal of a crucial “safety valve” in the tax system will leave dozens of small business people who have lost track of their tax affairs facing ruin.
The Finance Act is set to put a stop to a long-standing concession, which, in extreme cases, allows the Revenue to scale back excessive tax demands issued in response to a failure to file tax returns.
The bills, which risk driving individuals into bankruptcy, are often many times what would be owed if returns had been filed on time, according to the Chartered Institute of Taxation.
Charities and tax advisers are lobbying for a reversal of the government’s decision, which follows a House of Lords ruling that cast doubt over the Revenue’s discretion to grant concessions.
Andrew Hubbard, president of the Chartered Institute of Taxation, said it was “absolutely essential” that the Revenue was able to take a sensible and pragmatic view in cases of severe hardship. If the government does not think again “some very vulnerable taxpayers could be facing an
extremely bleak future”, he argued.
Source: APSCo
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Tags: apsco, chartered institute of taxation, The Finance Act
