Taxpayers’ charter must be ‘founded’ in legislation

17 September 2008

The proposed new taxpayers’ charter must have a proper legal basis, the Chartered Institute of Taxation (CIOT) has said.

In its submission to the government’s consultation, the CIOT argued that, for it to be effective, the charter must be “founded in statute”.

The aim of the charter is to provide taxpayers with a clear understanding of their rights and responsibilities, and to make transparency and certainty essential parts of the relationship between taxpayers and HM Revenue and Customs (HMRC).

Nick Goulding, the president of the CIOT, said: “With the extensive modernisation and extension of HMRC’s powers, taxpayers need a clear, accessible expression of their rights as a key part of the balancing safeguards. And for the Charter to work, it needs to be founded – to have its vires – in legislation.”

However, the CIOT believes that, since the charter must be a “living document”, capable of being developed and updated, it should not all be in statute.

Mr Goulding added: “We are calling on the Government to press forward with the Charter by including an enabling clause in the Finance Bill in 2009.”