CIOT questions tax defaulter 'naming and shaming'

Date: 6th May 2009

The Chartered Institute of Taxation (CIOT) has questioned the government's decision to publicise tax defaulters.

As detailed in the Finance Bill, the policy would enable HM Revenue and Customs (HMRC) to highlight those firms which fail to meet their taxation obligations.

The CIOT has responded with concerns that the system could lead to cases of mistaken identity.

Chairman of the CIOT's management of taxes sub-committee, John Whiting, said: "The proposition naturally raises concerns over ensuring it is only used in appropriate circumstances."

He stated that the policy entailed a number of questions, such as what would happen if HMRC were to name an organisation incorrectly.

"The way that the rule is hedged around in the bill makes one wonder whether it is really as much of a safeguard as it should be," Mr Whitling added.

Meanwhile, HMRC has issued a final reminder for companies to file their Employer Annual Returns before the May 19th deadline.