OTS efficiency pinpointed as inquiry into Finance Bill launches

THE effectiveness of the draft Finance Bill is to be called into question, with the House of Lords Economic Affairs group establishing a sub-committee to look into how the bill will affect individual tax payers.

The Finance Bill Sub-Committee (FBSC) will assess whether the Finance Bill will “contribute to the simplification of the personal tax system and their impact on the compliance burdens of individual taxpayers.”

The FSBC has called for evidence on three major topics within the draft bill, including the proposed changes to the taxation of savings and dividends, as well as the new power allowing HMRC to assess an individual’s tax liability without a tax return being submitted.

Also on the agenda is the decision to establish a permanent OTS. The FBSC is looking to discuss the extent to which the OTS is “likely to promote the future development of a simple, transparent personal tax system.”

This announcement comes days after OTS chair Angela Knight was called in front of the Treasury Select Committee for her lobbying role during the financial crisis and Libor scandal. Knight repeatedly apologised to the committee after Labour MP Helen Goodman, suggested that she now had a “credibility issue” following her time at the BBA.

A call for evidence issued on 14 January has set a deadline for submissions of Friday 29 January 2016. The FBSC will publish its report prior to the Budget in March 2016.