CIOT calls for tax moratorium in 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.’