Revenue: positive feedback City tax lawyers this week welcomed the announcement that the business sections of the soon-to-be-merged Customs & Excise and Inland Revenue will be the first to be amalgamated, but they are wary of how policy within the merged structure will be directed.


Speaking to The Financial Times last week, David Varney, chairman-elect of HM Revenue and Customs who takes up the position this September, said: 'We are looking early to see what scope there is for putting the two large business organisations together.'



Peter Nias, a tax partner at the London office of US firm McDermott Will & Emery, said: 'I think it is a good thing. I think there can be lots of misunderstandings when different tax bodies are responsible for corporation tax and VAT audits. When they are both under one roof the risk of duplication is reduced.'


Ashley Greenbank, a partner with City firm Macfarlanes, said: 'It means that we'll have more stuff on our plate first, but we'll also get it over with first.'


He said that the government review which led to the decision to merge Customs and the Inland Revenue shifted the weight of policymaking functions to the Treasury.


He added: 'The main concern is that it's a change and it'll take time getting used to how they operate in the future.'


Graham Airs, head of tax at Slaughter & May and a member of the Law Society's tax law committee, said: 'I'm not surprised that business will be merged first, it involves bigger money and bigger issues... I think the only way it would affect us adversely is if the Treasury were less amenable than the Revenue.'