THE BIG QUESTION :
FDs sceptical over proposed Customs and Revenue merger.
Most finance directors doubt if the proposed merger between Customs & Excise and the Inland Revenue would bring any benefits.
More than 40% were against the idea and 19% were unconvinced, but only 40% endorsed the union. Most FDs wanted compliance cost reduction for the taxpayer, but few believed a merger to be the solution. Others were concerned about the incompatibility of the organisations.
These are the results of an exclusive poll of 200 FDs for The Big Question, a survey commissioned by Accountancy Age and Reed Accountancy Personnel.
Peter Harris of Evenlode Truck Centre said: ‘This would create a very unwieldy organisation and the combination of power would be frightening.’
Bill McIlwraith of Explore Worldwide was in favour of the merger, but cautioned: ‘Customs has strong search powers that shouldn’t be granted to the Revenue.’
Robert Dearing of Twickenham Plating Group added: ‘The main role of Customs is not revenue collection. If they merged, expertise in other areas, like drug importation control, would be affected. It seems they would still have to be separate departments, so would the cost justify a merger?’
Roger Catto of ITnet said: ‘There is no reason why the government cannot impose consistent standards and principles across both organisations without the need for amalgamation.’
Richard Hill of Spar Landmark added: ‘They should first improve current operations, like sharing technology and having a common database.’
However, another FD argued: ‘There would appear to be a number of overlapping areas. A merger would simplify administration for both government and business.’
