Following on from our previous update on the above project being undertaken by HMRC's Review of Powers Team, we are now in a position to confirm that there will be a deferral in publishing or implementing the revised draft legislation. This is further to representations made by Chartered Accountants Ireland along with other professional bodies.

HMRC have been working with a select number of professional bodies and practitioners to address the many concerns raised when the draft legislation on “deliberate wrongdoing” was published in February last year. This further delay is a positive sign that HMRC are keen to get this legislation right from the very outset and want to work closely with the profession in order to do so.

HMRC now advise that after holding the July workshops, two smaller meetings were held to take the process forward. As a result of these meetings, HMRC state that those attending acknowledge that HMRC are prepared to look at all aspects of the draft legislation.

Simon Norris, head of the Review of Powers Team also stresses that the overall view seems to be that things are moving in the right direction but that there remains more to do. However, HMRC also acknowledge that they continue to be asked to justify, more than they have already done, why these new powers are needed.

The aim of the project remains to deliver the policy aim set out in the consultation document “Working with tax agents: the next stage”. As a result, HMRC's advice to Ministers has been that to ensure this is achieved, and in working with the profession on this draft legislation, there will be a further delay in publishing amended draft legislation in this area. As a result, the draft Finance Bill 2011 clauses published on 9 December do not include anything on this area.

There is likely to be a further ‘workshop’ with the profession early this year and we will provide a progress update in due course.