HMRC has issued a new paper on the way in which it proposes to manage country-by-country reporting. Included is this statement:
Operational impact (£m) (HMRC or other)
There will be a modest cost to HMRC from receiving and processing the reports and also from responding to requests to exchange information from tax authorities in other jurisdictions estimated at £100,000 for 2017 to 2018 and £200,000 a year thereafter.
Let’s assume that HMRC are marginal costing, i.e. they are just considering additional direct staff costs. What does £200,000 buy? Maybe three reasonably senior people? Perhaps a bit less after NIC and pension costs are accounted for? And there are no IT costs at all, so no tools are to be created to handle this data, I note.
Are they serious?
The biggest new risk assessment tool for a generation is being introduced and HMRC are effectively saying they are going to ignore it?
Why is that?
Do they not want to avoid tax abuse?