HMRC-City relations improves, but issues remain: Norton Rose

Top city accountants have praised efforts by the taxman to improve how it
deals with customers, but have also said sticking points still remain.

In a survey by law firm Norton Rose, senior tax figures at more than 20 of
the Square Mile’s biggest banks and corporates said HM Revenue & Custom’s
client relationship manager programme was working well.

“73% of the respondents cited [the CRM introduction] as the most significant
change by HMRC is the last five years, and 82% of them felt the system had
improved the Revenue’s service,” Norton Rose said.

However HMRC’s litigation approach received a mixed reception in the law
firm’s “Dealing with the Taxman: A study of HMRC’s relationship with
large corporate taxpayers”

Adopted in June 2007, the strategy was designed to close the tax gap and
bring in a greater degree of effectiveness to the way HMRC acts when litigating
contentious tax matters.

“Many felt that the strategy acted to undo a lot of the good work achieved by
the client relationship managers and risk assessment process,” Norton Rose said.

41% of respondents believed strategy had not improved the time taken to
resolve matters.

23% felt it had led to HMRC failing to honour previous agreements, and 68%
felt it had made HMRC more unwilling to settle matters, according to the firm.

Further reading:

litigation settlement strategy

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