aop
ad

Treasury ends double taxation consultation

by Jaimie Kaffash

More from this author

12 Sep 2011

David Gauke exchequer secretary

A CONSULTATION on combating tax avoidance arrangements that exploit double taxation arrangements has been cancelled because of the uncertainty the proposals will make for UK compliant businesses.

Responses to the consultation, which was released on 1 August, have made it clear that its intended scope and effect will create significant uncertainty.

Double tax treaties provide investors with assurance that they will not be taxed in two countries. Instead of the proposals, which set out a wide ranging strategy, the government will instead tackle avoidance by challenging specific tax avoidance strategies, Exchequer secretary to the Treasury David Gauke (pictured) announced last week.

Chris Sanger, head of tax policy at Ernst & Young, said that the government's decision to end the consultation should be welcomed and prove that ministers are committed to transparency. This decision would be "greeted with a sigh of relief", he added.

"Had the government's proposals gone ahead, UK competitiveness would have been eroded. It would have hit commercial transactions by restricting access to funding markets and hiked up the costs of investing into the UK," Sanger said.

"The Coalition pledged to take a more consultative approach to tax policy making and, from this volte face, they seem to be living up to their mantra," he added.

 

Visitor comments Add your comment

Double taxation

Hi Jaimie,

Thanks for the informative post on double taxation arrangements being cancelled.

I agree with Chris Sanger, the decision would be "greeted with a sigh of relief"

Posted by: Colin Davenport FCCA@Accountants in Birmingham, 12 Sep 2011 | 15:14

Add your comment
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit

Search thousands of financial jobs:

Information currently unavailable.

Search thousands of financial jobs:

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you

Briefings

Supplier Statement Reconciliations cover

Supplier statement reconciliations: Manual chore or critical value adding process?

By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.

7 Building Blocks cover

7 building blocks for business growth

Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities