Reduce tax burden on business, says CIOT

The Government should reduce the administrative tax burden on business to help employers in a difficult trading period, according to John Whiting, President of the Chartered Institute of Taxation (CIOT).

The CIOT is recommending 12 tax 'Quick Wins' to the Government to help businesses pull through the downturn.

Mr Whiting said: "We are suggesting a dozen ways to reduce the administrative tax burden on business, whilst ensuring that there is minimal loss of revenue to the Treasury. The recommendations are easy to implement, and any loss of revenue would be offset by savings in administration and collection costs. This is all about helping businesses, even in just a small way, in the current difficult climate.

"This is all about helping businesses, even in just a small way, in the current difficult climate" - John Whiting, President of the CIOT

"We know that the problem of complexity cannot be solved in one step, but we want the Government to acknowledge the problem of complexity by committing to making annual changes to the tax system aimed at making it simpler administratively (to follow). We want to provoke debate and challenge the Government and tax authorities into action."

The CIOT goes on to give longer-term suggestions for reducing the tax burden on companies. For example, it believes that the system under which a company's profits are taxed under various Schedules and Cases, dating from the early 19th century and designed to protect a gentleman's privacy, should be abolished with companies simply assessed on a single composite profits figure.

The recommendations form the second part of a series of 'Quick Wins' statements included in a paper sent to HM Treasury, the Inland Revenue and representatives of the three main political parties by the CIOT.

--

Richard Powell, UKTECH