Clause 35 - Powers of Commissioners on a review
Finance Bill
2:45 pm
Mr Stephen O'Brien (Eddisbury, Conservative)
Given the arguments that relate to clauses 35 and 36, I am grateful, Sir Nicholas, that you have adjusted the order in which we consider the amendments. The arguments are slightly different from those that we have just considered on clause 34, the result of which was disappointing. I shall not have to repeat my arguments on clause 35 when we discuss clause 36.
Clause 35 sets out the powers of the commissioners and the time limit for giving notice of their determination on a review. I shall briefly outline the problem as I see it. Subsection (4) provides that if the commissioners do not give notice of their review decision within 45 days, it shall be taken that they have confirmed their decision. That means that any inactivity on the part of the commissioners, for whatever reason, prejudices the position of the taxpayer in that one avenue of appeal is removed. A powerful argument has been made not just by Opposition Members but by others who have been advising us that the provision is unacceptable, given the relative resources of commissioners and small businesses. That is very much in line with arguments that have been made earlier.
The solution for clause 35 can be found in amendments Nos. 131 and 132 and for clause 36 in amendment No. 120. The recommendation is to consider how the burden might be reversed so that the commissioners are required to notify the taxpayer of their decision within 45 days. If they do not, it should be assumed that the commissioners have varied the decision in the applicant's favour.
To protect against situations in which taxpayers do not ensure that the commissioners receive notification promptly, it would be appropriate for the time limit of 45 days to reply to run from the date of receipt of notification by the commissioners, which can easily be established.