It has been proposed that HMRC are going to be given new powers that will allow it to enforce financial institutions to provide information about people's assets.
At the moment, an individual needs to grant permission about the request for information on their assets to be shared, or a tax tribunal needs to approve the request. Under the new powers, a court approval, or approval by the individual will no longer needed.
This new government proposal may come into effect as early as next year and means it will be quicker and more convenient for HMRC to share information with foreign tax authorities as part of an international clampdown on tax evasion. This will affect financial institutions such as banks, investment advisers, fund managers, credit unions, insurance companies and credit card issuers.
The Chartered Institute of Taxation has some apprehension over this proposal and says it is "concerned about the loss of independent tribunal oversight, particularly in cases which involve requests for information about UK taxpayers". However, HMRC has said that granting these new powers is important in the battle against tax evasion and avoidance and would help them deal with it in "an appropriate and effective way".
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