Liberal Democrat Leader Sir Menzies Campbell has called for massive
simplification of business taxation – including a general anti-avoidance
rule to make it possible.
Delivering a major policy speech at the Stock Exchange, he outlined his aim
of reaching out to business and industry.
Campbell, who detailed a new approach to personal taxation a month ago,
said: ‘We need a simpler corporation tax structure and there are a number of
tax reliefs available to companies which, if removed, would allow the
Treasury to cut corporation tax by a full percentage point.’
He added: ‘I can see the conceptual merit in a general anti-avoidance rule
which would allow for a massive simplification for businesses, cutting
hundreds of pages out of the tax code.’
Campbell aid it was also ‘time for the Treasury to look at an option for
small businesses to be taxed on net cash flow not profit’.
He said the changes would be ‘broadly revenue neutral’ but hold out the
prospect of significant savings on ‘expensive accounting procedures’.
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