Revenue 'gets tough' with appeals process

Inland Revenue inspectors have launched a ‘get tough’ campaign with people and companies appealing against tax demands and late-payers. The Chartered Institute of Taxation claims the process to clear outstanding appeals will hit taxpayers hard.

The Government department, which denied the institute’s allegation, is keen to finalise all its disputed tax cases before the new self-assessment regime swings into full effect in April.

Accountancy Age understands that there is considerable pressure on all local tax inspectors to clear appeals covering 1995/6 and earlier years by listing them for General Commissioner hearings.

Once an appeal against a disputed assessment has been listed, a taxpayer must produce evidence to support his appeal. If the appeal is rejected or no action is taken, the assessment stands and the tax must be paid.

CIoT technical committee chairman John Whiting said the General Commissioners route was standard practice, but the Revenue had accelerated the process by at least six months. Whiting estimated that up to two million taxpayers, many with acceptable reasons for late payment, could be affected.

‘This normally starts happening in the summer, but now a lot of people will receive these notices who have never seen them before. If they don’t do anything they will have to pay.’

The Revenue defended its decision. A spokesman said: ‘We’re not getting tough. Self-assessment is all about people getting up to date.

‘Inspectors are following the set Deferred Delayed Appeals procedure and the Revenue expects them to list appeals when they are due.’