Taxman and chancellor urged to speak to Europe
The new president of the Chartered Institute of Taxation issues a call for Gordon Brown and the tax authorities to co-operate with their European neighbours, as well as with the Anglo-Saxon economies
In an interview to mark the start of his presidency, John Cullinane said the
degree of discussion between HM Revenue & Customs and tax authorities in the
US, Canada and Australia was more than that between HMRC and European tax
authorities.
Referring to Marks & Spencer’s litigation over group relief claims,
Cullinane said that EU member states could have co-operated: ‘With complicated
company structures, it’s not always clear which country stumps up the group
relief. Who pays out? Member states could get together.’
Large-scale litigation in Europe has proved a major headache for the taxman.
‘I have no problem with the fact that HMRC collaborates with other Revenue
authorities. But the co-operation seems to be about avoidance. We could do
something solid here to clarify matters for business,’ said Cullinane.