Call for Taxpayers' Charter to be in law

The Treasury is being urged to reconsider its decision not to put the new Taxpayer's Charter in legislation.

John Brazier, managing director of the Professional Contractors Group (PCG) said: "We were extremely disappointed that the Government has already decided not to put the Charter on a firm legal basis.

"The obligations on taxpayers to pay tax, and the powers open to HMRC to investigate them, are enshrined in statute; it cannot possibly be right that HMRC's obligations to taxpayers will not be."

PCG has submitted a full response to HMRC's consultation exercise on the scope of the Charter, and attended a workshop hosted by HMRC on Monday (September 8). PCG's formal response argues that, 'a right that is not enshrined in law is a right that cannot be accessed by the citizen; it is therefore no right at all.'

It also urges HMRC to focus more clearly on the poor state of the relationship between the taxpayer and the tax authority, which, it claimed, has deteriorated so badly that there is a risk of taxpayers becoming less willing to comply with their lawful obligations.

Mr Brazier said: "This is a serious issue for the future of the tax system. HMRC needs to put its money where its mouth is and show that it is serious about making itself accountable; if it does not, it will be sending a clear message that it feels it should be a law unto itself, and many taxpayers will regard this as totally unacceptable in a leading democracy."