Well that’s the question being asked after it was announced that HMRC would adopt a new strategy in dealing with tax disputes.
Instead of taking a ‘black and white’ approach, resulting in court proceedings or no action at all, they will look to be more pragmatic in seeking agreements with individuals.
Dave Harnett, Permanent Secretary for Tax acknowledged that officials had taken too harsh a line in tax disputes. In an interview with the Financial Times, he said: “’HMRC is packed full of very intelligent people, but we are sometimes too black-and-white about the law.”
The reason for the revision in tax law enforcement is due to a backlog of cases going through the courts. It’s hoped that by being more conciliatory, that ‘logjam’ will be reduced.
With tax issues rarely being straightforward, the promise of a more flexible approach has to be a good thing.
