Arctic rules don't add up
So many advisers have slagged off the newly-released
income-splitting legislation that even chief taxman Dave Hartnett would
struggle to find someone happy with the new rules. Don’t forget he berated
Accountancy Age for not knowing that loads of advisers approved of HM Revenue
& Customs’ battle against Arctic Systems, apparently.
But beyond that cheap shot at Dave (who’s busy enough as it
is encrypting data discs), TS has been told on several occasions that the
Treasury’s examples used within the legislation contain simple tax
miscalculations. For the example in box 1.1, Baker Tilly’s George Bull was
concerned they had failed to consider corporation tax for ‘Nina and Joe’s’
imaginary business – which would have kept £9,000 from the Treasury’s coffers
and which he described as one of a number of ‘serious and misleading errors’ in
TS is sure the Jones’s of Arctic Systems fame would be
pleased with this particular calculation.