Check, Challenge, Appeal .....

1. Check, Challenge, Appeal .....

2. A view from the other side Negotiation? Consultation? Maximise Revenue?

3. A view from the other side

4. Transition The preferred option?

5. Appeals - The position today

6. Procedure Proposals by / on behalf of ratepayers VOA can correct the list or; VOA Programme for negotiation Resolve by target date or refer to Tribunal Representations to Tribunal Tribunal decision

7. Arguments for change Large number of speculative proposals Slow appeals process Revenue loss

8. What really needs to change Resourcing Attitude Transparency Efficiency Simplicity

9. So what is changing?

10. Consultation? Department for Communities and Local Government Reforming business rates appeals – consultation on statutory implementation 8 weeks Consultation from 08 August 2016 to 11 October 2016

11. What is says on the tin “The reforms aim to provide a system which is easier to navigate......with the emphasis on early engagement by parties to reach a swift resolution of cases. Under the reformed system, businesses will be more confident that their valuations are correct....” Department for Communities and Local Government Check Challenge Appeal Reforming Business Rates Appeals – Consultation on Statutory Implementation August 2016

12. Reality is somewhat different An attempt to cut the number of appeals but by the wrong method The new system puts much greater burden on the ratepayer / their agent The VOA are under no obligation to engage with an early explanation The VOA business plan proposes a further 30% cut in staffing in the next five years

13. He should know... “The Ratepayer is never given the full explanation for the valuation. As a result, every time there is a new rating list, ratepayers initiate a challenge – partly to protect their position but chiefly to flush out more information. Unless information is given up front, the system will remain defective and unsatisfactory and unjust. I don’t know any other tax that can be levied where the tax payer does not understand, in full, down to the last detail, the basis on which the tax man has calculated the tax due. It’s unprecedented, it’s unique and it’s wrong” Professor Graham Zellick CBE QC Former President of the Valuation Tribunal for England.

14. Reality Civil penalties and increased bureaucracy will discourage unrepresented ratepayers Check stage introduces additional delays Standardisation of forms reduces flexibility VOA will be able to unilaterally reject a proposal with no right of appeal VOA information is frequently wrong

15. Reality The Valuation Officer holds far more evidence than the ratepayer can gain access to The Valuation Office will provide information if he considers it reasonable The proposer has to provide evidence The proposed system puts the ratepayer at an immediate disadvantage

16. The RSA say... “If the governments intention is to reduce the number of appeals, then this is completely the wrong way to go about it. The appropriate approach is to satisfy ratepayers genuine need to understand their tax liability, by sharing the underlying evidence without need to enter a formal challenge” “This puts the VOA in a position of total power and control over the success or otherwise of the process and thus renders the process a sham and contrary to the principles of natural justice as prescribed as long ago as the Magna Carta.” The Rating Surveyors Association Response concerning the proposals for Check, Challenge, Appeal, Reforming Business Rates Appeals in England

17. The burden of Proof Rateable Value is VOA opinion It is down to the appellant to disprove “Common Sense” appears to be a devalued currency Oldschool & Oldschool v. Coll (VO) 1995 – “The interest of the Valuation Officer is to get the right assessment, not to win rating appeals”

18. Check, Challenge Appeal Inadequate sharing of information will lead to disputes

19. Russell’s Teapot “There is a teapot orbiting our sun. It is located somewhere between Mars and Earth. Since you can’t prove me wrong, that means that it is there” Philosopher Bertrand Russell (1872–1970)

20. Reasonable Judgement

21. Reasonable Judgement “The government is fixated with the number of rating appeals and determined to undermine the fundamental democracy of the rating system in order to reduce the impact of the statutory challenge process ” “This proposal is unworkable and monstrously unfair and will only line the pockets of the lawyers at the expense of the ratepayer. It must be withdrawn!” David Magor OBE IRRV (Hons) Chief Executive of The Institute of Revenues, Rating and Valuation

22. A reminder “The reforms aim to provide a system which is easier to navigate......with the emphasis on early engagement by parties to reach a swift resolution of cases. Under the reformed system, businesses will be more confident that their valuations are correct....” Or a slower, more complex system, biased against the ratepayer?

23. Any Questions?

24. Paul Stevens BSc (Hons) MRICS IRRV Director of Rating – South West Region Lambert Smith Hampton Tel – 0117 914 2006 or 01392 798 040 Mob – 07720 035995 Email – pstevens@lsh.co.uk