HM REVENUE AND
CUSTOMS News Release (NAT 04/08) issued by The Government News
Network on 10 January 2008
An HMRC-led report
on how revenue bodies across the world can achieve a more
effective relationship with major taxpayers and their advisors was
published by the OECD today.
A number of tax commissioners from African countries attended
their first OECD Forum on Tax Administration, where the
recommendations of the HMRC report were endorsed by more than 30 countries.
The meeting will help African countries develop their capacity to
raise revenues, supporting the development of capable governments
and making them more accountable to their citizens.
The meeting will also lead to improved tax systems delivering the
funding to develop vital infrastructures and the establishment of
an International Tax Centre in Africa. These ideas will be
developed at a conference to be hosted by the South Africa Revenue
Service in May.
The report concludes that tax authorities can achieve a more
effective and efficient relationship with taxpayers and
intermediaries if their actions are based on:
* commercial understanding;
* impartiality;
* proportionality;
* openness; and
* responsiveness.
The report also recommends that national tax authorities should
use risk management to direct the allocation of resources when
tackling aggressive tax planning.
Tax advisers who involve their clients in aggressive avoidance
schemes need to understand that there are consequences in terms of
how their clients are perceived and dealt with by tax authorities.
Jane Kennedy, Financial Secretary to the Treasury said:
"HMRC's people, their experience and skills, are held
in high regard internationally. That is why the OECD asked HMRC to
undertake this important research.
"The OECD is concerned to build capacity in African
countries' tax systems. A well-regulated and effective tax
system underwrites every country's political and economic
development and I welcome the announcement of a conference focused
on Africa later in the year.
"The report presents a vision of how tax authorities, large
corporate bodies and intermediaries should work together in a
relationship based on transparency and trust.
"Constructing a co-operative environment is in the interests
of taxpayers and tax authorities alike."
HMRC Acting Chairman, Dave Hartnett said:
"Intermediaries have a vital role to play in providing
constructive advice and guidance to their large corporate clients.
But some intermediaries are unfortunately still tempted to push
aggressive tax avoidance schemes - in so doing they damage both
the reputations of their clients and their relationships with tax authorities.
"A more co-operative, trust-based tax environment will
result in greater certainty, more timely resolutions and reduced
compliance costs for taxpayers and their representatives.
"This is groundbreaking work by OECD, led by HMRC which can
be drawn-upon by revenue bodies throughout the world as a template
in constructing a better working relationship with intermediaries
and corporate clients."
Notes for editors
1. The report was produced by HMRC on behalf of the OECD's
Forum on Tax Administration.
The OECD is committed to a conference developing capacity
building in African tax authorities 'Taxation, Governance and
Capacity Building in Africa' to be held in South Africa in
late May 2008.
2. In the context of the report the term 'intermediary'
can be taken to mean law and accounting firms, other tax advisers
and financial institutions.
3. The report has been formally discussed by more than 30 heads
of tax administrations at the Forum on Tax Administration meeting
in Cape Town on 10 and 11 January. Countries attending have
endorsed the Cape Town Communique, which sets out the
report's key conclusions and recommendations, as well as
broader FTA issues.
4. The report was led by a study team which was a partnership
between HM Revenue and Customs and the OECD Secretariat. It is
available at: http://www.oecd.org
5. The study team gave all countries attending the Forum on Tax
Administration the opportunity to contribute to and influence the
direction of the report, and were assisted by a core group of 12
countries: Australia, Canada, Chile France, India, Ireland, Japan,
Mexico, the Netherlands, South Africa, Spain and the USA.
6. There was also extensive consultation with the private sector.
Issued by HM Revenue & Customs Press Office
Website http://www.hmrc.gov.uk