| HMRC has launched a new dispute resolution pilot in
the North West and North Wales for small and medium sized
enterprises (SMEs). Under this scheme, independent HMRC
facilitators, who have not been involved in the case up to that
point, are used to resolve disputes that may have arisen during
HMRC's compliance checks. |
 |
The driving force behind this initiative is to avoid tribunal
hearings and reduce the associated costs for both
parties.
This initiative follows a similar pilot in 2011 that was aimed at
cases heading towards the tax tribunal. HMRC said that 60% of these
disputes were either fully or partially resolved, with the
"overwhelming majority" fully resolved.
HMRC's assistant director, local compliance, Jim Stevenson, said:
"ADR will help SMEs resolve disputes without having to go to a
tribunal - saving them both time and money. It is a good
opportunity for HMRC to work together with our customers to
potentially resolve disputes much earlier than at present.
"The facilitators are HMRC members of staff who have been trained
in ADR techniques and have not been involved in the dispute.
"We have found that often there are communication problems. So the
HMRC facilitator will help all parties reach a shared and full
understanding of the disputed facts and arguments. They will also
ensure there is good communication, and help explain what each side
is trying to say to the other. The aim is to resolve the dispute
or, if not, as many issues as possible."
 |
Tim Adcock,
Mitchell Charlesworth's Specialist Tax Partner said that, in order
for the scheme to be successful, there must be a guarantee of
independence from the dispute mediator, which is not immediately
obvious.
"In order to encourage SMEs to use the ADR procedure, they must
have assurances that the HMRC facilitators are independent and that
they will get an impartial ruling from the dispute resolution
facilitator"
|
It could be argued by SMEs that the Treasury should not play the
role of mediator in the ADR procedure as the original dispute was
with their own HMRC decision. Rather, an independent adjudicator
could be used with an objective view of the facts - perhaps of the
SMEs own choosing?"
"Nevertheless, we would urge smaller businesses in North Wales and
the North West to take advantage of this pilot scheme as evidence
suggests that participants usually emerge better off, whether this
is a final solution or a greater understanding of each side's
position which should reduce your costs, time and stress."
More background on the ADR pilot can be found on HMRC's website
here.
For more information about Mitchell Charlesworth's Tax services or
to find out how we can help your business, contact us today. Simply
complete
a quick enquiry form or email:
tim.adcock@mitchellcharlesworth.co.uk
or contact your nearest
office.