Proposals to build a modern, state of the art tax system

Our tax system is built on principles that have stood the test of time. In 1776 Adam Smith identified the key principles of good taxation in his book The Wealth of Nations emphasising equity certainty convenience and efficiency. Even today these principles remain essential in shaping a tax system reflective of contemporary society.

The UK’s tax administration framework encapsulates the set of policies legislation and guidance that underpins HMRC’s ability to administer taxes and duties effectively. Reform of tax administration has been on HMRC’s agenda for some time and its most recent call for evidence (which closed in early May 2024) focused on several core areas:

• enquiry and assessment powers;
• penalties; and
• safeguards.

The need for digitalisation overlaps across these different areas and is briefly considered against the backdrop of an ever-evolving tax landscape.

Enquiry and assessment powers...