Government proposals state that it should be able to claim tax before any cash is generated – such as where a property has increased in value but has not been sold.
‘Many profitable companies fail because of cashflow problems, so changes to the tax system which force companies to pay more tax, earlier, might force some companies out of business altogether,’ said Ruth Lea, head of the policy unit at the IoD.
The proposed changes come with the Revenues Consultation of Reform of Corporation Tax, which was published in August. While the changes may well achieve the Revenues goal of simplifying the tax system, it would do at an enormous cost to business.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states