Decision overturned

KEY POINTS

• Many Government department tribunals are to be replaced.
• Taxpayers will have a right of review of appealable tax decisions.
• Direct taxes will be most affected.
• Reform will take effect from April 2009.

The main purpose of this article is to explain what has been happening with the direct taxes internal review trial but it will also be useful to put the trial in context.

Tribunals reform is a wide-ranging change led by the tribunal service of the Ministry of Justice affecting all Government tribunals.

It follows Sir Andrew Leggatt’s report in 2001 which looked at modernising the practices of the Government tribunals.

A new two-tier tribunal system - i.e. the first-tier tribunal and the upper tribunal - will replace a great many tribunals across Government including those currently hearing tax appeals and the tribunal...