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Nobody wins if the last resort of equitable liability is withdrawn, says TaxAid’s ARTHUR HOOK
KEY POINTS
- Determinations are often misunderstood by the taxpayer.
- Equitable liability is a vital last resort.
- DMB’s discretion is not enough.
- Equitable liability was not seen as an ESC.
- Time limit for filing and amending returns to be reduced..
HMRC's practice of equitable liability has provided a safety net for some of the most vulnerable in dealing with the tax system as demonstrated by Harry Fulton in his article Marathon saga.
Under equitable liability HMRC are able to accept actual figures of income or profits to displace tax liabilities fixed by determination for years that would normally be beyond the time limit for filing a self assessment tax return.
The withdrawal of this practice from April 2010 was announced in a document called Withdrawal of extra-statutory concessions.
The note...
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