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Taxation, work and welfare
Tax Professionals Forum: minutes
30 March 2011
The Exchequer Secretary to the Treasury, David Gauke MP, chaired the second meeting of the Tax Professionals Forum on 30 March 2011. Philip Baker QC sent his apologies. All other members of the forum were present. The discussion focussed on two key areas:
- improvements in the tax policy development process since the last meeting in September 2010 and publication of 'The new approach to tax policy making: a response to the consultation in December 2010'; and
- the formal role of the forum.
The Exchequer Secretary opened the meeting. He set out the steps that the Government has taken since the last forum meeting to put into practice the new approach to tax policy making. These included:
- publishing in December draft clauses for the majority of new policies in Finance Bill 2011;
- announcing the majority of Finance Bill 2012 measures in Budget 2011;
- publishing a document on the Government’s anti-avoidance strategy; and
- publishing Tax Information and Impact Notes (TIINs) in the document 'Overview of Tax Legislation and Rates'.
Response of forum members
Members of the forum welcomed the improvements to tax policy making that had been made since the last forum meeting. In particular, the publication of draft clauses in December was welcomed for providing a clear indication of the contents of Finance Bill 2011 and enabling pre-legislative scrutiny which forum members felt had led to substantial drafting improvements in a number of cases.
Forum members also welcomed the introduction of Tax Information and Information Notes and the publication of tax-related material all in a single place ('Overview of Tax Legislation and Rates') at the Budget. Members of the forum suggested changes for future versions of this document, including on when specific provisions of tax legislation will take effect. Overall, forum members felt that improvements in tax policy making were tangible at the Budget – with few surprises.
Concern was raised about the increase in the Oil Supplementary Charge announced at Budget 2011, and its impact on predictability and stability in the tax system. Forum members also discussed the draft legislation on Disguised Remuneration, and some concern that not all issues raised in consultation had yet been addressed.
Those present discussed the tax policy consultations which had taken place since the last forum meeting. Forum members welcomed the Government’s open and constructive engagement on consultations. A number of specific tax policies were cited as examples of how good consultation had led to a much better policy outcome.
The Exchequer Secretary and members of the forum discussed the Government’s anti-avoidance strategy. Forum members welcomed the Protocol on unscheduled announcement of tax policy changes.
Finally, forum members welcomed the principles of taxation set out in the Chancellor of the Exchequer’s Budget statement. They suggested that the Government should now add further detail on how its future tax strategy will be guided by these principles.
The formal role of the forum
Members of the forum confirmed that the remit of the forum should remain that agreed at the first meeting. This was to support the Exchequer Secretary, HM Treasury and HMRC in identifying improvements to the way in which the Government makes tax policy, rather than provide a forum for debating specific policy issues. Its remit would include consideration of:
- the way in which policy is developed;
- the way in which policy and changes in policy are communicated; and
- the way in which policy is legislated and implemented.
Forum members agreed to prepare an annual report on the Government’s tax policy making processes and the Government’s progress against the proposals set out in 'The new approach to tax policy making'.
Forum members have been asked to write to the Exchequer Secretary before the end of October 2011, attaching a copy of their report. It will be published on HMT website.
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