ICAEW weighs into argument for tax rethink

The Institute of
Acccountants in England and Wales
has weighed into the heated argument for a
tax rethink, imploring chancellor Alistair Darling to improve tax policy
formulation, develop a clear small business tax policy, tackle the skills gap
and secure more resources for
HM Customs & Revenue.

Frank Haskew, head of the ICAEW Tax Faculty, said the ICAEW believed radical
improvements were needed to the way key tax policies were formulated.

‘Except in exceptional circumstances, for example the need to counter a tax
avoidance scheme, there should be prior consultation on the proposals with
stakeholders. Where major changes are made, taxpayers’ legitimate expectations
need to be preserved,’ he said.

Haskew also called for the need of an overarching strategy and core
principles to be agreed in the development of a more simplified tax system. ‘The
ICAEW is concerned that the impact of the new £30,000 levy on the UK’s
international competitiveness has not been considered thoroughly. We are also
concerned that the proposals will hit many non-domiciles on low earnings, not
just the very wealthy,’ he said.

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