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."
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.