Chancellor told tax development is 'deeply flawed'
CIoT president stresses need for consultation on upcoming tax policy
George Osborne
The development of tax law in the UK is “deeply flawed”, according to the
president of the Chartered Institute of Taxation in an open letter to the new
new chancellor George Osborne.
Vincent Oratore writes: “The CIoT believes that the way tax law is developed
and effected in the UK is deeply flawed. The current parliamentary process has
major shortcomings – a lack of expert scrutiny and a shortage of time among
them.”
The letter highlights four key areas Oratore believes need tackling – the tax
system lacks a proper design; the system is too complex and is in need of a
dedicated body to aid simplification;it needs an an improved law making process
and their should be a focus on removing “uncertainty” from the way taxes are
managed by the government.
Oratore adds: “Overriding all these matters is consultation: our belief that
the tax system in the UK is best developed as a partnership between all those
affected by it.”
The letter comes as the chancellor today became embroiled in a row with
members of his own party over his intentions for capital gains tax. As part of
the coalition deal with the Lib Dems the Tories agreed to raise CGT rates on
non-business assets. It is thought these rises might go as high as the income
tax rates – 40 or 50%.
A group of Tory MPs and Peers today said they would oppose the changes
because it would damage entrepreneurs.
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