 HMRC’s ‘Alternative Dispute Resolution’ service is not a viable alternative for SMEs
9 January 2012: PKF Accountants & business advisers is not convinced that the Alternative Dispute Resolution (ADR) procedure, which is being piloted by HMRC, will provide a meaningful alternative to tribunals for SMEs wishing to resolve issues with the taxman.
John Cassidy, tax investigations and resolutions partner at PKF, said: "On the face of it, any measure that provides SMEs with an alternative to a tribunal, which can be disproportionately costly and time consuming for smaller companies, will be welcomed by business owners."
"However, SMEs will need to be reassured that a procedure reliant upon an HMRC facilitator is genuinely independent - bosses will shun the ADR unless they believe that they’ll get a fair hearing from the taxman. Entrepreneurs may also point out that the Treasury is asking them to make a leap of faith that it is not prepared to make itself - why can’t the resolution procedure be mediated by the SME’s tax advisers, provided that they are a reputable practice?"
"Many in the SME community are already wary of the taxman following recent accusations of a bias against smaller enterprises, so regaining the confidence of business owners is going to be critical to the success of the pilot."
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For further information, please contact: Andy Konieczko, 020 7065 0537, andrew.konieczko@uk.pkf.com
Notes to Editors:
1. PKF (UK) LLP is a leading firm of accountants and business advisers with more than 1,500 partners and staff operating in 23 offices in the UK mainland firm, incorporating a wholly-owned financial planning company and associated offshore practices. The firm specialises in advising growing and entrepreneurial/owner-managed businesses, AIM and fully listed companies, and also has extensive experience in the public and not-for-profit sectors. Principal services include assurance and advisory; taxation; consultancy; corporate recovery and insolvency; corporate finance and forensic. The firm has particular expertise in advising sectors such as hotels and leisure; mining and resource; public sector; real estate and construction; professional practices; not-for-profit; and medical. The firm’s web site is www.pkf.co.uk
2. PKF (UK) LLP also offers financial services through its FSA authorised company, PKF Financial Planning Limited. PKF (Isle of Man) LLC is a limited liability company registered in the Isle of Man. PKF (Channel Islands) Limited is incorporated in Guernsey.
3. PKF (UK) LLP is a member firm of the PKF International Limited (PKFI) network of legally independent member firms. The PKFI member firms have around 2,200 partners and more than 21,000 staff in around 125 countries.
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