The Treasury’s recently published report has attracted a lot of criticism, and it is being referred to as a “cynical and misleading attempt at the justification of an unjust policy” by the Loan Charge APPG. They accused the HMRC and Treasury for “evading proper scrutiny and accountability.”
According to the APPG, the report from the Treasury did not include anything new. Instead, it contained the slightly modified version of the same misleading documents which were provided to the journalists and MPs in the past.
Sir Ed Davey, the APPG’s Chairman, stated that the Treasury was not up to the task in addressing concerns regarding the popular view that an amendment is being represented in the tax reforms for the last two years due to the Loan Charge and it does not align with the rule of law.
Sir Davey expressed a sense of dissatisfaction and lamented the fact that the review fell short of their expectations and did not seem to follow the promises of the Prime Minister. As a consequence, he believes that the MPs will continue to raise their voice on the issue for their constituents who are still struggling badly.
Officially, the APPG was unhappy with many of the report’s findings. Some of those critiques are the following.
- The taxman did not appear to genuinely oversee the issue as there was a lack of critical examination for their assertions.
- The repeated use of terms “belief” and “views” by the Government instead of actual facts.
- The report seems to disregards the struggles of the affected individuals as they were referred to form merely a small segment of the population.
The APPG asked “In what other area of Government policy would the fact that only 50,000 to 100,000 people are affected be an excuse for inaction?”
Moreover, the report was devoid of any fresh evidence by either the Treasury or the HMRC. Despite the efforts of the APPG that provided 70 submissions for those taxpayers who were dealing with the Loan Charge, the HMRC refused to accept their claims.
Previously, the Treasury and HMRC announced that the revenue would rise by £3.2bn by the Loan Charge. However, the APPG has issues with these claims. The release of the report comes after two months when a cross-party amendment by Sir Davey compelled the Government to come up with a Loan Charge review.