Modernising tax debt collection from non-paying businesses
Executive summary
AAT welcomes many of the proposals but believes the suggestion that this is to reflect the changing nature of the economy and new business practices is very misleading. Most of these situations have been known about, and brought to HMRC’s attention, over a period of not just years but decades, for example with regard to in-house leasing, fulfilment centres and intangibles. The use of digital wallets is the only area that could realistically fall within the characterisation of modernisation.
AAT supports measures to allow HMRC to enter fulfilment houses to seize goods and believes they are long overdue.
AAT supports any measures that minimise (or ideally eradicate) non-payment of tax debts through in-house leasing.
The restriction of Taking Control of Goods powers so that they cannot be used to incentivise payment where a business primarily has intangible assets, is outmoded, outdated and unhelpful in seeking to minimise non-payment of tax debts.
Businesses who can pay their tax debt but repeatedly choose not to are a considerable challenge and AAT suggests that examining the merits of increased and additional fines would be worthwhile here. Proposals for changes to Director liability and the increased use of security deposits are also worthy of exploration.
Related consultation responses
Tougher consequences for promoters of tax avoidance
AAT welcomes more information on how often HMRC plans to use its criminal investigation powers and what resources are available to fund it.
Corporate re-domiciliation
AAT supports the principle of the UK aligning its re-domiciliation approach with its international competitors if opportunities for abuse are kept to a minimum.
