Tax reform talks to drag on

Link: Door slammed on tax avoidance loopholes

Discussions on reforming the 40-year old system began in August last year as the Treasury pledged to simplify the tax system.

An extension is necessary because complex questions have been raised about transitional costs and the treatment of assets, the FT reported.

Under proposal is a change in the way capital gains are taxed; moving from a system of taxing the proceeds from actual disposals to a one based on amounts stated in the accounts.

This has already drawn concern from the CBI, who says such a system could hit company cashflows, and from small businesses who describe the proposals as oppressive.

Related reading