Published on 18 July 2023

The Tax Administration Framework Review: Creating innovative change through new legislative pilots

Submissions

LITRG has responded to HMRC's consultation on 'Creating innovative change through new legislative pilots', as part of the Tax Administration Framework Review.

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Andrii Yalanskyi /Shutterstock.com

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.

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