Tax disclosure deals for all, suggests the CIOT

The recent announcement by HM Revenue & Customs (HMRC) of a ‘disclosure opportunity' for medical professionals (the Tax Health Plan or THP) would logically lead to a similar arrangement being available to all taxpayers as a matter of fairness, says the Chartered Institute of Taxation (CIOT).

Under the THP, eligible people can disclose their arrears and then settle their tax affairs with only a 10% penalty rather than a penalty that might reach 100%.

Gary Ashford, chair of the CIOT's management of taxes committee said: "Whilst we welcome HMRC encouraging people to get their tax affairs in order, there is a measure of unfairness in offering a deal to one sector of the population and not to others. Surely it would be better to have a general arrangement available to all and a concerted effort by HMRC to get their message over?"

The CIOT has concerns that the way HMRC are offering different disclosure facilities to various groups with short time windows is not ideal. It will also make others who wish to get their tax arrears in order wonder whether they should wait for ‘their' opportunity.

Gary Ashford continued: "It would be sensible to consider a genuine one off disclosure for everyone.  And one that lasts sufficiently long and is sufficiently attractive to get people to come forward. This could enable them to clean the slate before the advent of the harsher ‘Naming and Shaming' rules that come in from April 2010."