Overview
Disputes can arise across all taxes and occur for a variety of reasons. KPMG’s Dispute Resolution team can help through all stages of the dispute lifespan, including:
Dispute prevention – assistance in transaction implementation and documentation, preparation of tax return filing positions and disclosure, applications for formal clearances or early informal agreement through real time working with HMRC.
Dispute management – assistance in engaging effectively with HMRC to progress issues efficiently to minimise disruption to your business. We can assist you at all stages of an enquiry process from responding to opening notices and information requests through to obtaining closure notices.
Dispute resolution – assistance with alternative resolution solutions for more complex disputes. We can assist you develop tax dispute resolution strategies that align to your business objectives and enable you to quickly evaluate potential settlement outcomes whether through negotiation or litigation and assist with working with HMRC to reach resolution.
Resolving disputes with HMRC can be complicated – knowing the people and the process can make a difference. To achieve your desired outcome you will benefit from assistance by people who are experts in this field. We know the processes. We know the people. We get results.
What's on your Mind?
Does your business have ongoing tax enquiries or emerging issues and would benefit from professional help in progressing resolution with HMRC. Possible triggers could include:
- A significant single issue where lack of agreement with HMRC is causing a business issue or delaying/preventing a transaction
- Limited progress being made with HMRC due to absence of or insufficient resolution strategy
- HMRC viewing your business as 'high risk' and so more likely to target you for intense intervention
- Change in the business (merger/acquisition), management team or tax strategy that provides an opportunity for a new relationship with HMRC
- An open tax position(s) resulting in tax reporting issues, large provisions, uncertainty on availability of losses, cash tax on account with HMRC pending resolution
- Tax planning / restructuring transaction being implemented where it is known that HMRC are likely to have a different view of the tax analysis
- Pending litigation.
Bringing you Peace of Mind
We have extensive experience of assisting organisations resolve tax disputes whilst maintaining an effective working relationship with HMRC. As well as resolving significant single issue disputes, our team has a strong understanding, based on practical experience, of how best to approach resolving large, complex, multifaceted tax disputes across all taxes with HMRC. This experience includes working a large number of significant tax settlements through formal HMRC resolution programmes including:
- High Risk Corporates Programme (HRCP) for businesses dealt with by HMRC Large Business Service
- Managing Complex Risk Programme (MCRP) for businesses dealt with by HMRC Local Compliance Large & Complex
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HMRC’s alternative approach to settling Controlled Foreign Company (CFC) issues
- Alternative Dispute Resolution (ADR) for disputes capable of resolution using mediation techniques
Through these projects we have helped clients achieve certainty on disputed tax issues quickly and efficiently and in a way which enhanced their relationship with HMRC.
Our methodology incorporates a phased approach to help organisations progress disputed tax issues towards resolution with HMRC. Our approach aims to help organisations resolve difficult disputes collaboratively with HMRC. Where the chosen option for resolution is litigation our approach is to help manage this in a non-confrontational way. We can facilitate the resolution of contentious issues whilst enabling organisations to stay in control of the process
What's in it for you?
Potential benefits can include:
- Release or increased accuracy of tax provisions
- Overpaid cash tax refunded by HMRC
- Certainty of filing positions and/or availability of losses/reliefs
- Enhanced relationship and reduced risk profile with HMRC
- Reduced compliance costs with tax department resources freed up for more valuable work
- Enhanced reputation with internal and external stakeholders.
Why KPMG:
Through our experience of recent significant projects we have a network of relationships with HMRC and a proven approach to dispute resolution:
- Our multi-disciplinary team has industry-leading skills in tax dispute management, which not only deliver clients the right outcome when settling historic issues, but also secures future benefits through our forward looking approach
- Our collaborative approach facilitates the resolution of contentious issues, whilst enabling clients to stay in control and enhance their reputation with both internal and external stakeholders
- We have excellent credentials and strong relationships with key senior HMRC people (including in the Large Business Service and Local Compliance Large & Complex), established through working successful dispute resolution projects
- Download an information sheet on KPMG's approach to Resolving Tax Disputes (PDF 718 KB).
We know the processes. We know the people. We get results.
Case Study
Following a takeover we worked with the Parent group and HMRC to resolve significant inherited disputed tax issues. The Parent wanted to progress the disputed issues to resolution quickly, whilst securing appropriate value, and improving their relationship with HMRC.
We worked with the client to develop a base case of possible resolution scenarios and engaged with HMRC, to agree a process to enable the disputed issues to be resolved. We acted as intermediary on several levels - strategic oversight, project management and technical resource/negotiation on certain issues. The project achieved resolution of a range of direct & indirect tax issues spanning several years.
The client secured the desired benefit from negotiated settlement of many items resulting in release of significant provisions. The client received a greatly improved risk assessment from HMRC and we helped them develop and implement a new working relationship to give both parties earlier certainty on future emerging tax issues.
