TaxPersonal TaxTwo Bills on Income Tax within three years

Two Bills on Income Tax within three years

Bills to replace current income tax legislation should be ready for introduction to parliament within the next three years, according to the Tax Law Rewrite Project.

The Inland Revenue has disclosed the first Bill, relating to employment income should be in parliament by November 2002, while a second, probably covering trading, property and savings and investment income, should be ready 12 months later.

The news follows comments from Steve Matheson, deputy chairman of the Revenue, that the accountancy profession is to blame for the complexity of tax through the ceation of a tax avoidance ‘industry’.

This week Richard Mannion, the newly appointed president at the Chartered Institute of Taxation, asserted that the tax system was ‘creaking at the seams’ and was in need of reform.

As part of the first Income Tax Bill the Rewrite team will reconstruct the Pay as You Earn regulations – a move which the Revenue hopes will earn the approval of employers and comes despite intentions that the project would not involve itself with secondary legislation.

Dawn Primarolo, paymaster general, said in a parliamentary answer: ‘I am pleased to say that the Tax Law Rewrite project is making very good progress and continues to enjoy wide support.

She said a draft Capital Allowances Bill would be published at the end of July for final consultation.

There is general concern about the tax system and its complexity as a result of efforts to draft legislation that blocks tax avoidance.

Movement in areas such as Dutch mixers has prompted many to believe the government is overly concerned with what it calls ‘unfair avoidance’ on issues which have been commonly accepted as legitimate in the past.

Getting carried away by new Bill

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

3d Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

2w Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

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

2m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

4m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

5m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

5m Alia Shoaib, Reporter