Last month HMRC published a new code of governance intended to give more transparency about the Department's decision-making processes for tax disputes. The code follows on from the appointment of HMRC's first Tax Assurance Commissioner whose role is to ensure that Parliament and the public can have confidence in HMRC's work and be satisfied that HMRC's treatment of taxpayers is even-handed and subject to appropriate governance.

In a message accompanying publication of the code, the new Commissioner reiterated HMRC's commitment to greater transparency whilst noting that this must always be subject to the over-riding legal obligation to preserve taxpayer confidentiality. It is also stressed that the Commissioner will not play any role in handling the tax affairs of any specific individual.

HMRC advise that the code of governance reflects feedback from its own staff and key stakeholders on a draft version in July. The code is designed to ensure that the decisions made about resolving tax disputes are consistent with HMRC's Litigation and Settlement Strategy.

Processes must be proportionate to the point in dispute and consistent with managing the tax system in a way which is efficient for both taxpayers and for HMRC. Therefore the governance arrangements should support and not impede the efficient administration of tax.

The code of governance is available from the HMRC website at www.hmrc.gov.uk.