CIOT criticises disguised remuneration legislation
Chartered Institute of Taxation called details of the Finance Bill "too complex"
THE GOVERNMENT’S disguised remuneration legislation is far too complex, the Chartered Institute of Taxation has warned.
The legislation, announced in the Finance Bill, targets the use of offshore trusts to provide tax-free salaries to employees. However, many groups have said that the 59 pages of legislation is too complex.
Colin Ben-Nathan, chairman of the CIOT’s employment taxes subcommittee, said: “We support the government in tackling tax avoidance involving rewards paid via third parties but we think the legislation in the Finance Bill is far too complicated and risks creating problems as well as solving them.”
Employers will have trouble assessing where they stand with the new legislation, Ben-Nathan added. “We suspect many employers will want to seek clearance from HMRC on their particular arrangements and we wonder whether HMRC has the resources to cope and what the turnaround time will be,” he added.
