What power does section 11 of the Commissioners for Revenue and Customs Act 2005 give the Treasury?

Section 11 grants the Treasury the power to give directions of a general nature to the HMRC Commissioners regarding the exercise of their functions. The Commissioners must comply with these directions. This enables the Treasury to set strategic direction for HMRC and hold the Commissioners accountable for overall outcomes of their actions.

What is the scope of the Treasury's power to direct HMRC under section 11?

The Treasury's power covers all functions conferred on the Commissioners under section 5 of the Act. The phrase 'directions of a general nature' is deliberately broad and replaces various expressions from earlier legislation. In practice, the Treasury can set HMRC's strategic direction and require the Commissioners to account for overall outcomes.

Can the Treasury direct HMRC on individual taxpayer cases under section 11?

No. The Treasury's power under section 11 does not extend to day-to-day or operational matters. The Treasury cannot direct or become involved in specific cases such as an individual taxpayer's affairs. The distinction is between high-level strategic oversight and detailed operational decisions, with the Treasury confined to the former.

What is an example of a permissible Treasury direction to HMRC?

The Treasury might issue a general direction to HMRC to prioritise improving the efficiency of tax collection processes or to focus resources on tackling widespread non-compliance. However, the Treasury could not instruct HMRC to investigate a specific taxpayer or decide the outcome of a particular tax dispute.

Commissioners for Revenue and Customs Act 2005 section 11

Treasury directions

Section 11 establishes the Treasury's power to give general directions to the HMRC Commissioners regarding the exercise of their functions.

The Commissioners must comply with any directions of a general nature given by the Treasury
The Treasury can direct overall strategies and hold the Commissioners to account for the broad effect of their actions
The Treasury cannot direct day-to-day or operational decisions, nor become involved in individual taxpayers' affairs
This oversight applies to all functions conferred on the Commissioners under section 5 of the Act

Access full legislation.And much more.

By becoming a member, your team gets full access to Tax World research tools and source-backed tax resources.

Become a member