THE UK’S TAX SYSTEM is not “fit for purpose” and requires a complete overhaul if it is to tax companies effectively, chief executives have warned.
PwC’s annual survey of CEOs revealed 73% of UK bosses feel the present system is unsuitable for the 21st century, while 71% believe attempts to reform it will be futile.
It is up to MPs to create a workable system, although the hold little confidence their efforts will produce any viable system, they added.
Three quarters of CEOs questioned claimed that paying a “fair share” of tax is a priority for their company.
Current OECD attempts to reform the international tax system would be unsuccessful in the next few years, according to two-thirds of respondents, far higher than the worldwide average of 40%.
“There’s been a lot of criticism around the tax arrangements they [companies] have put in place,” PwC UK chairman Ian Powell told The Telegraph in Davos.
“But actually, it’s become a political question, because as long as countries are trying to use tax rates as a way to bring jobs into their own country, you are going to get tax arbitrage.
“What CEOs are asking for is: can we get some clarity on this, and can we get more consistency on tax arrangements, which would make it a lot easier for them to handle their affairs.”
CIot urges HMRC to consider a delay to the 1 September 2017 introduction of its new corporate offence of failure to prevent the criminal facilitation of tax evasion
The current business rates system is over-complex and reform is needed, but reforms should focus first of all on simplifying the appeals process, particularly for businesses which are subject to business rates exemption
The CIoT has called on the government to rethink its approach to ensuring online sellers pay the correct amount of VAT.
Jane Ellison to serve as 'tax minister' following ministerial responsibilities for public health. David Gauke become chief secretary to the Treasury