Tribunals ReformCIOT and ARC 25 September 2008

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BACKGROUND

•Tribunals Courts and Enforcement Act 2007

•New First-tier and Upper Tribunals will cover all HMRC direct and indirect tax matters

•Will take all work from current VAT and Duties Tribunal, General and Special Commissioners and S706 Tribunal

•Tax Credit, child benefit and other social entitlement appeals will be brought within new Social Entitlement Chamber [except in NI]

•New internal reviews

•New Tax Chamber costs regime (costs for complex track and unreasonable)

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TRIBUNALS

•Tribunals will use tribunal venues all over UK

•Panels will be a mix of legally qualified and lay members depending on nature of case

•All appeals will be vetted in administration centre by legally qualified registrar

•Appeals from First -tier with permission and on point of law

•Tribunal rules – MoJ devise, consulting HMRC and other stakeholders

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IMPACTS

• New review process available

•Taxpayers may request review or HMRC may offer one

•All appeals will be sent to Tribunal by the taxpayer

•HMRC will no longer send appeals to the tribunal. MoJ will tell HMRC

•Different tracks: “Paper Hearing” track, basic track, standard and complex

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INTERNAL REVIEW

•Review available after go live for all appeals whenever made

•Review will apply to all HMRC decisions – not just the main taxes

•Reviewers will not be connected to caseworkers – genuine second look

•Review decisions will explain reasons

•45 day time limit can be extended by agreement

•Review trial (direct taxes) in Manchester

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BENEFITS

•Improve customer experience

•Unfettered access to manifestly independent tribunal

•Greater consistency across taxes by introducing common internal review arrangements

•Paper Hearings - will reduce costs for customers and the Tribunal Service

•Better, high quality and timeous dispute resolution.

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KEY MESSAGES

•There will be changes

•New internal reviews will be introduced

•For direct taxes there will be a new process to get appeals to the tribunal