The Tax Administration Framework Review: information and data

HMRC are exploring how they might update their powers to gather information and data. The consultation also considers how to standardise the data HMRC receive from third parties and how to make the legislation more flexible. It takes into account the increasing use of pre-population of returns.

In our response, we highlight the importance of reviewing the balance of responsibilities between the taxpayer and tax authority in the light of the use of pre-population. The taxpayer will no longer be the originator for much of the data included in the tax return. So there are questions around responsibility for accuracy of data, recording data correctly and placing data in the correct part of the return. While we think the taxpayer should have responsibility for checking the data against their records and checking the return is correct, this must be accompanied by robust and swift processes through which the taxpayer can challenge, amend or correct data.

LITRG’s response can be downloaded here.