The ICAEW is stepping up the pressure on HM Revenue & Customs to withdraw new rules which will allow the taxman powers to swoop unexpectedly on businesses without a warrant after the Finance Bill, published yesterday, showed the institute's earlier requests were not heeded.
The ICAEW said it was concerned that the provisions 'appear to be aimed primarily towards investigations of a "criminal type" nature, as distinct from civil inquiries into a taxpayer's affairs'.
But the chancellor has argued that the proposals are merely matching the Revenue's powers with those given to Customs & Excise before the two merged in 2005.
However the institute insists the provisions 'give far too much power to HMRC without adequate safeguards for taxpayers'. reported the Daily Telegraph.
The institute raised concerns over the power to enter business premises with only a day's notice; the ability to mount 'fishing expeditions' by inspecting the position of a taxpayer before a return is made; and the right of HMRC to dictate record-keeping requirements.
The ICAEW is also worried about the lack of safeguards, such as rights of
appeal and the increasing tendency of HMRC to seek broad powers in primary
legislation.
The institute also wants to see a right of appeal against the power to inspect
assets and premises.
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