HMRC’s departmental culture

Key points

• HMRC’s duty to encourage compliance and penalise wrongdoers.
• A House of Lords report highlighted serious issues in HMRC’s approach.
• Confidence in the integrity of tax officers has been a hallmark of the UK tax system.
• The First-tier Tribunal is unable to discharge penalties on the grounds of unfairness.
• Time for a genuine and meaningful taxpayer’s charter.
• Should there be compensation if a taxpayer’s claim is challenged unsuccessfully by HMRC?
• A change of departmental culture is required.

Somebody rather important once said: ‘I have a dream.’ I too have a dream – rather less important – but if it could turn into reality it would make a lot of difference to a lot of people. It is all to do with tax 
and HMRC.

There is increasing disquiet about the deteriorating relationship between the Revenue and taxpayers and this obviously is a matter of real importance to taxpayers – and a matter of deep regret to...