Swiss lawyers, for example, appear to have a very different relationship with their tax authorities.
Where a transaction has a Swiss element, it is common for lawyers there to involve the tax authorities as matters progress, making certain that the taxpayer is taking a position that has been pre-approved and therefore has complete certainty.
Switzerland is not unique in this regard, although there have been criticisms in some other jurisdictions about overly-generous clearances being granted.
The relationship between taxpayer and HMRC and the nature of the business environment in the UK mean that such a process may well be more difficult in the UK, but from a tax practitioner’s perspective, the ability to check points with HMRC in real time would undoubtedly be helpful.
The irony is that taxpayers who are regarded as high risk, while they will come under greater scrutiny, may actually have greater access to HMRC officers who will be willing to review and offer their view of the taxpayer’s affairs.
No taxpayer would want the type of publicity to which certain enquiries have been subjected, but for many taxpayers the only thing worse than having your affairs looked at by HMRC is not to have them looked at.
Richard Giangrande is a private client partner at Macfarlanes
