Working With Tax Agents Dishonest Conduct Discussion Document

The Northern Ireland Tax Committee of Chartered Accountants Ireland briefly wishes to comment on the above discussion document published 14 July 2011.

We have previously submitted responses to the consultations on Modernising Powers, Deterrents and Safeguards: Working with Tax Agents (April 2009) and Draft Legislation on Deliberate Wrongdoing by Tax Agents (February 2010).

We recognise that in the light of those previous consultations, the current proposals are somewhat different and reflect some of the views expressed by ourselves and others who were party to the consulta-tions. Nevertheless we are disappointed that HMRC continues to pursue this legislation. It appears regres-sive when viewed in the light of another ongoing consultation Establishing the future relationship between the tax agent community and HM Revenue & Customs.

Furthermore, whilst it is right for HMRC to have appropriate powers to take action against what we believe to be a very small minority of Agents involved in Dishonest Conduct, we remain unconvinced of the immediate need for additional legislation in this area, especially insofar as regulated agents are concerned. We feel that there is more scope for HMRC to examine the role of the regulatory bodies, such as Chartered Accountants Regulatory Board (the regulatory body of Chartered Accountants Ireland) where concerns over agent behaviour arise in the first instance.

Sanctions which we could apply, for example, on foot of a sustained complaint from HMRC could include–

• Imposition of monetary fines up to €30,000;
• Termination or suspension of membership of an individual;
• Withdrawal of practising certificate from an individual;
• Withdrawal of authorisations and registrations from member firms; and
• Members firms being prohibited from describing itself as “Chartered Accountants” for a specified period.

More information on sanctions and the disciplinary process is available at www.carb.ie

This would mean that any additional powers of sanction which HMRC might feel they need would be directed primarily towards unregulated agents.

Also it seems to us that there may be a disconnect between the resources which HMRC must apply to tackle this type of problem, with its actual incidence.

On the basis of the above we do not propose to comment further on the current consultation and revised draft legislation.

Yours sincerely,

Eamonn Donaghy

Chairman,

Northern Ireland Tax Committee,

Chartered Accountants Ireland

Source: Chartered Accountants Ireland. www.charteredaccountants.ie