Taxation: Debt Collection
The question
To ask the Chancellor of the Exchequer, whether she has received (a) legal advice on the compatibility of the proposed lower-value debt recovery powers with the European Convention on Human Rights, (b) a programme risk register, (c) advice on reputational risks arising from the proposals, (d) external legal advice on implementation and (e) contingency plans should recovery rates fall below forecast.
Answered by Dan Tomlinson
The Government is consulting on proposals to tackle lower value tax debts in a way that is fair, proportionate and effective. The proposals are intended to address a small minority of taxpayers who can afford to pay what they owe but repeatedly choose not to do so and fail to engage with HMRC despite numerous attempts to make contact.
The consultation seeks views on the design, scope and safeguards that should apply to any future measure. This includes protections for taxpayers who may be experiencing temporary financial difficulty or who may have extra support needs, where views are sought on how best to identify such needs where they have not been communicated to HMRC.
As the consultation remains open, no final decisions have been taken on the design of the proposed measure. Therefore, the Government has not made final assessments relating to the matters raised. A full impact assessment will be published if, and when, legislation is brought forward.
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