TaxCorporate TaxTaxman plans to give prizes for paying tax

Taxman plans to give prizes for paying tax

Taxman proposes awarding 'certificates' to companies to show how much tax they have paid

Companies could be given a certificate showing how much tax they have paid,
under proposals emerging from the taxman’s consultation into large business
taxation.

HM Revenue & Customs has been consulting on the significance of tax in
the boardroom for the past year, and a report released today contains a number
of recommendations about how to take the moves forward.

Among its key recommendations are: ‘A system of reporting the total direct
and indirect tax contribution by UK business to the UK economy would be
welcomed, and this information should be published by HMRC. HMRC could explore
how this might be done impartially, for example, as a certificate or tax
statement that sets out an entity’s total contribution on an annual basis.’

A ‘total tax contribution framework’ idea has been drawn up by
PricewaterhouseCoopers and adopted as a research model by the influential
Hundred Group of Finance Directors.

Certificates detailing how much tax companies had paid would increase
transparency. From HMRC’s perspective, it would potentially highlight companies
with poor contributions overall, whilst companies who had made significant tax
payments might wish to demonstrate they had done so.

Other recommendations included more communication and a need for trust. A
lack of trust between companies and HMRC was a key finding of the report.

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