Publishing a summary of responses to the consultation Tax Enquiries: Closure Rules, HMRC appears to agree with the NI Tax Committee that such powers should contain safeguards to protect taxpayers. Many of the concerns expressed by the Committee are directly reflected in HMRC’s response.

In its submission on the original consultation document, the Committee had expressed concern that the proposed new powers had insufficient safeguards to protect taxpayers. The consultation response notes the importance that safeguards will play as part of this new power.

However, as the best, most practicable way to give that effect is not clear cut, HMRC proposes to develop a small number of alternative models to that originally proposed. Stakeholders, including this Institute, will be consulted with to help identify the optimum model for this new power.

The aim is to bring forward legislation in Finance Bill 2016. However, given the concerns expressed by the Committee and other respondents and the time needed to consult further, it may be necessary to defer legislative change until Finance Bill 2017.