Chapters: 01 | 02 | 03 | 04 | 05 | 06 | 07 | 08 | 09 | 10 | 11 | 12 | 13 | 14 | 15 | 16
The terms tax, duty and imposition of a similar nature cover a range of charges relating to the raising of revenue for government purposes. They are linked by the idea of the imposition of an obligation to pay where the primary - or a significant - purpose of imposing the payment is to raise revenue over and above the cost of any service to which the payment is related. As such, they are distinct from a payment for commercially provided goods or services, or a proportionate fee charged for a statutory service.
Examples of taxes, duties and impositions of a similar nature include
Impositions of a similar nature is a category of charges which, although not called a 'tax' or 'duty', nonetheless have similar characteristics to a tax or duty. Difficult issues may arise, for example, at the margins of the distinction between such impositions and a proper charge for services (particularly in some areas of the charging of fees by public authorities) and in cases of uncertainty legal advice should be sought.
Examples of disclosures with a high potential for prejudicing the assessment or collection of taxes, etc, include:
Disclosure of such information could prejudice the collection of taxes, for example, by allowing those targeted by tax changes or investigations to take evasionary steps, damaging the relationship of trust between the tax authorities and companies/individuals, or undermining the tax authorities' strategies/tactics.
There is a strong public interest in having stable and secure public finances. This is crucial to the stability and sustainable growth of the UK economy and delivers the resources to fund public services. An efficient and well administered tax system also improves the competitiveness of business and supports the government's social and welfare objectives. A central requirement of a modern and fair tax system is that everyone pays the proper amount of tax and receives the benefits they are entitled to. Tax avoidance and evasion distort the incentives that the tax system aims to deliver and unfairly shift a greater tax burden onto honest and compliant taxpayers. They also reduce the revenue available for delivering public services. On the other hand, disclosure of information has a part to play in promoting greater public awareness of how taxes work, and that in turn helps make it simpler for people and business to pay taxes. Where this part of this exemption is engaged, it is important that Departments are clear about existing taxation policies and systems, and follow an approach to disclosure which fully takes into account the public interest in the proper administration of taxation both in general and in particular cases, and in avoiding disruption and distortion of markets or of the successful delivery of tax policy objectives.
The tax assessment and collection process is underwritten by an enforcement regime with criminal, civil and regulatory components. In any case where they are engaged, the relevant wider provisions of section 31 may be engaged, as also may section 30.
Where the wider effectiveness of the tax collection system is relevant, consideration may also need to be given to the possible relevance of section 29 (the economy).
Section 35 may be relevant, in cases relating to the development of taxation policy, and section 36 in cases where a disclosure could prejudice the effective conduct of public affairs - for example by impeding the implementation of taxation changes, facilitating tax avoidance and forestalling, or releasing market-sensitive information which could prejudice the delivery of revenue policy goals.
Where disclosure relates to particular cases, section 41(information provided in confidence) and section 40 (personal information may be relevant). There are also specific statutory prohibitions on the disclosure of certain information concerning tax liabilities (section 44).