The tax profession has given a cautious welcome to the HMRC Charter - most commonly referred to as the Taxpayers' Charter - following its formal launch yesterday. John Whiting, the Chartered Institute of Taxation's tax policy director, said: 'The charter is an important step forward in relations between taxpayers and the taxman and will help people in their dealings with HMRC.' The Low Incomes Tax Reform Group (LITRG), however, said that there was room to strengthen the charter in future, such as including an obligation on HM Revenue & Customs to be proactive in offering explanations and identifying people who have overpaid tax. John Andrews, chairman of the group, which gives a voice to unrepresented taxpayers, said: 'The government's commitment to regular review of the charter is welcome.' The charter was legislated for in this year's Finance Act and sets out how taxpayers can expect to be treated by HMRC, including being treated even-handedly and with respect. It is considered a necessary tool for safeguarding taxpayers' rights in the light of new HMRC powers. But it has not had an easy birth. An earlier draft was described as an 'abysmal document' by QC Philip Baker. Whiting said: 'The first draft of the charter was deeply disappointing and wholly inadequate but HMRC deserve credit for listening to representations from ourselves and other tax professionals and producing a much improved final text.'