The Tax Administration Framework Review: Creating innovative change through new legislative pilots
LITRG has responded to HMRC's consultation on 'Creating innovative change through new legislative pilots', as part of the Tax Administration Framework Review.
HMRC define this proposed legislative framework, known as a ‘sandbox’, as ‘a temporary environment where HMRC could conduct tests of new policy and processes which suspend, implement and/or harmonise legal obligations. This could be for a distinct group of people or sector for a defined period of time and would be accompanied by appropriate safeguards and guidance’.
In our response, we recognise the potential benefits of sandboxes on a conceptual level – as they may help allow HMRC greater flexibility in testing new policy and processes. However, the use of sandboxes may present a number of practical challenges, including:
- whether taxpayer participation in a sandbox is voluntary or mandatory, and
- how HMRC ensure fairness between sandbox participants and the rest of the population.
LITRG’s response can be downloaded here.