SMEs in non-compliance tax threat

Small businesses are getting so frustrated with the complexity of the tax
system that they may decide not to meet their legal obligations, a group
representing contractors and consultants has warned.

The Professional Contractors Group has called for an overhaul of the tax
regime, which it said suffered from complexity, uncertainty and ‘sometimes
strange and inconsistent tax outcomes’,
the
Financial Times reported.

The PCG warned taxpayers’ willingness to comply with legal obligations would
weaken as unhappiness increased. ‘PCG fears that small business taxation in
particular is getting close to this dangerous territory,’ the PCG told the FT.

The PCG also attacked the retroactive impact of recent changes or proposals,
such as the simplification of capital gains tax and rules designed to stop
‘income shifting’ in family-run businesses.

It said: ‘In order to disguise high levels of taxation, the government has
complicated the system substantially, and also become more aggressive in
attempting to extract the maximum revenue from existing rules.’

Further Reading:

Read
the FT story: Warning of revolt over tax