The Finance Bill is likely to receive just a few hours of scrutiny before parliament is dissolved for the general election.
With prime minister Gordon Brown announcing 6 May for the General Election, it is understood that the bill will be given a likely four hours tomorrow in Parliament to be signed off.
The last pre-election Finance Bill in 2005 received fours hours' scrutiny across 106 clauses, of which just 13 received any debate at all.
"We are worried that many of these clauses – including three new taxes – will be rushed into law with no meaningful debate. This is not a recipe for good tax law. I hope the Government will hold back a majority of their proposals for a post-election Finance Bill," said CIoT tax policy director John Whiting.
“There are many complex, technical measures in the bill. Many have been consulted on but even sensible ideas benefit from going through proper parliamentary scrutiny to make sure there are no loopholes or unintended consequences."
The CioT raised particular worries that plans to restrict pensions tax relief on higher earners were going forward in an "over-complex way".
"The proposals as framed will lead to substantial increases in costs for employers and the pensions industry generally.
The pensions restriction does not come into effect until April 2011 so there is no reason why it cannot be delayed until a post-election Finance Bill, where it can be properly scrutinised, and alternative proposals for achieving the government’ s objectives in this area considered," Whiting added.
You may also like
If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.
In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.