The Tax Administration Framework Review: Creating innovative change through new legislative pilots
LITRG has responded to HMRC's consultation on 'Creating innovative change through new legislative pilots', as part of the Tax Administration Framework Review.
![image of paper faces turning from grey to multicoloured, signifying change](/sites/default/files/styles/responsive_600w/public/The%20Tax%20Administration%20Framework%20Review%20%E2%80%93%20Creating%20innovative%20change%20through%20new%20legislative%20pilots_0.png?itok=lY8SW4VO)
HMRC define this proposed legislative framework, known as a ‘sandbox’, as ‘a temporary environment where HMRC could conduct tests of new policy and processes which suspend, implement and/or harmonise legal obligations. This could be for a distinct group of people or sector for a defined period of time and would be accompanied by appropriate safeguards and guidance’.
In our response, we recognise the potential benefits of sandboxes on a conceptual level – as they may help allow HMRC greater flexibility in testing new policy and processes. However, the use of sandboxes may present a number of practical challenges, including:
- whether taxpayer participation in a sandbox is voluntary or mandatory, and
- how HMRC ensure fairness between sandbox participants and the rest of the population.
LITRG’s response can be downloaded here.