The Institute of Chartered Acccountants in England and Wales has weighed into the heated argument for a tax rethink, imploring chancellor Alistair Darling to improve tax policy formulation, develop a clear small business tax policy, tackle the skills gap and secure more resources for HM Customs & Revenue.
Frank Haskew, head of the ICAEW Tax Faculty, said the ICAEW believed radical improvements were needed to the way key tax policies were formulated.
'Except in exceptional circumstances, for example the need to counter a tax avoidance scheme, there should be prior consultation on the proposals with stakeholders. Where major changes are made, taxpayers’ legitimate expectations need to be preserved,’ he said.
Haskew also called for the need of an overarching strategy and core principles to be agreed in the development of a more simplified tax system. ‘The ICAEW is concerned that the impact of the new £30,000 levy on the UK’s international competitiveness has not been considered thoroughly. We are also concerned that the proposals will hit many non-domiciles on low earnings, not just the very wealthy,’ he said.
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