TaxCorporate TaxAvoidance crackdown is just a ‘tax increase’

Avoidance crackdown is just a 'tax increase'

Deloitte says move to close loopholes is just a corporation tax rise by another name

Deloitte has claimed that the tax avoidance crackdown is just an increase in
corporation tax by any other name.

‘They’re using the closing of loopholes as a clever way of packaging what is
really a 10 per cent rise in corporation tax,’ said Bill Dodwell, a tax partner
at the firm, in The Observer.

Analysing the increase in the corporation tax take, and adjusting for
improved profitability and other changes, leaves an increase of £4bn, or 10 per
cent, Deloitte said.

The suggestion that the crackdown is simply a tax increase, a view echoed by
the CBI, will be regarded with great skepticism by those in HM Revenue &
Customs.

Ministers have in recent years moved to crack down on the most flagrant
abuses of the tax system, including the use of complicated financial instruments
to avoid tax and national insurance on large city bonuses.

The Big Four accountancy firms have become increasingly vocal in their
condemnation of the avoidance crackdown in recent weeks, however, which has been
severely restricting their revenues on tax work.

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

2w Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

2w Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

2m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

3m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

3m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

6m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

6m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

7m Alia Shoaib, Reporter