CIOT calls for tax moratorium in Budget
Tax institute pleads for no major changes to tax system in April Budget
The Chartered Institute of
Taxation has urged chancellor Alistair Darling to avoid making any more
major changes to the tax system in next month’s Budget – or risk further burdens
already struggling businesses.
The tax institute believes that during the downturn it would better serve
companies to consolidate and complete changes already in hand rather than
introduce new measures when Darling gives his speech on 22 April. Any such
changes, however well-intentioned they may be, could add to the administrative
burdens of taxpayers at a time when businesses need to concentrate on more
pressing matters.
‘At a time when business and individuals are facing very challenging
financial circumstances, they need stability, said CIOT president Nick Goulding.
‘Part of achieving that is to ensure there is certainty and that the government
works towards a simpler and fairer tax system. If the government wants to help
people by using the tax system, reform needs to be thought through very
carefully. A less complex, and therefore simpler, system would be one way to
make things easier for the taxpayer.
‘There are many proposals already in progress – foreign profits and the
continuing review of HMRC’s powers being the biggest – to give taxpayers and
their advisers plenty to deal with as they grapple with the downturn.’
