Trust Bloomberg Tax's Premier International Tax offering for the news and guidance to navigate the complex tax treaty networks and business regulations.
By Ben Stupples
The U.K. tax authority has been asked to explain its position on the government’s post-Brexit tax plans following claims that officials have described a cross-border trade provision as unworkable.
“HMRC officials are apparently criticising the Prime Minister’s plan for a customs partnership with the EU,” Nicky Morgan, chair of the U.K. Treasury select committee, said in a May 14 statement. “The Treasury Committee wants HMRC to explain the grounds on which these criticisms are based.”
Led by Morgan, a former education secretary, the Treasury select committee is a panel of U.K. lawmakers that scrutinizes the work of the U.K. Treasury and Her Majesty’s Revenue and Customs.
Morgan’s statement marks the second time in the past four weeks that she has questioned HMRC’s conduct. In a letter to HMRC’s chief executive, released April 25, she queried its efforts to collaborate with other countries after claims it failed to assist in a French probe of a London-based telecom giant.
The latest focus on HMRC centers on its response to the U.K. government’s tax plans for cross-border trade once the country leaves the European Union. The U.K. doesn’t have to impose cross-border taxes, such as import and export duties, on trade between member nations while it’s in the EU. The levies will apply, though, once the U.K. leaves the EU following a transition period that ends by 2021.
The government is mulling two options for its post-Brexit cross-border tax system. The first involves a customs partnership with the European Union, a move that would sustain free trade with the bloc but result in the U.K. collecting tariffs for the bloc. The second option, meanwhile, would enforce a hard U.K. border but rely on technology and existing systems to reduce disruption for businesses.
“The Government’s two customs proposals are still on the table and work is being done as a priority on these,” an HMRC spokesman said in a May 14 email.
To contact the reporter on this story: Ben Stupples in London at firstname.lastname@example.org
To contact the editor responsible for this story: Penny Sukhraj at email@example.com
Copyright © 2018 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)