Finance Act 2016

PART 12 Office of Tax Simplification

184 Office of Tax Simplification

(1) There continues to be an Office of Tax Simplification (referred to in this Act as the “OTS”).

(2) Schedule 25 contains provision about the OTS.

185 Functions of the OTS: general

(1) The OTS must provide advice to the Chancellor of the Exchequer, on request or as the OTS considers appropriate, on the simplification of the tax system.

(2) For the purposes of this section and section 186—

(a) “the tax system” means the law relating to, and the administration of, relevant taxes,

(b) “relevant taxes” means taxes that the Commissioners for Her Majesty’s Revenue and Customs are responsible for collecting and managing, and

(c) a reference to “taxes” includes a reference to duties and national insurance contributions.

(3) References in this section and section 186 (however expressed) to the simplification of the tax system include references to improving the efficiency of the administration of relevant taxes.

186 Functions of the OTS: reviews and reports

(1) At the request of the Chancellor of the Exchequer, the OTS must conduct a review of an aspect of the tax system for the purpose of identifying whether, and if so how, that aspect of the tax system could be simplified.

(2) The OTS must prepare a report—

(a) setting out the results of the review, and

(b) making such recommendations (if any) as the OTS consider appropriate.

(3) The OTS must send a copy of the report to the Chancellor of the Exchequer.

(4) The Chancellor of the Exchequer must—

(a) publish the report, and

(b) lay a copy of the report before Parliament.

(5) The Chancellor of the Exchequer must prepare and publish a response to the report.

187 Annual report

(1) The OTS must prepare a report of the performance of its functions in each financial year.

(2) The report relating to a financial year must be prepared as soon as reasonably practicable after the end of the financial year.

(3) The OTS must—

(a) send a copy of the report to the Chancellor of the Exchequer, and

(b) publish the report.

(4) The Chancellor of the Exchequer must lay a copy of the report before Parliament.

(5) For the purposes of this paragraph, each of the following is a “financial year”—

(a) the period beginning with the day on which this section comes into force and ending with the following 31 March, and

(b) each successive period of 12 months.

188 Review of the OTS

(1) The Treasury must, before the end of each review period, conduct a review of the effectiveness of the OTS in performing its functions.

(2) The “review period” means—

(a) in relation to the first review, the period of 5 years beginning with the day on which this section comes into force, and

(b) in relation to subsequent reviews, the period of 5 years beginning with the day on which the previous review was completed.

(3) The Treasury must prepare and publish a report of each review.

189 Commencement

Sections 184 to 188 and Schedule 25 come into force on such day as the Treasury may by regulations made by statutory instrument appoint.