TaxPersonal TaxRevenue does not get GAAP, says KPMG

Revenue does not get GAAP, says KPMG

KPMG has slammed the Inland Revenue for misunderstanding the nature of UK GAAP in a consultation on reforming the taxation of intellectual property.

Experts at the firm say that any reform could be undermined by the Revenue’s assumption that it is possible to determine exactly which accounting practice is required by GAAP.

It is also says there is a real risk companies could lose tax relief if the Revenue continues with its view.

KPMG fears the Revenue could take a rigid view of accounting procedures under GAAP when it actually allows flexibility.

‘Companies must be free to amortise costs as they see fit within accepted accounting treatment without losing crucial tax relief,’ David O’Keeffe, the head of KPMG’s capital allowances consulting group, said.

There has been widespread support for reforming the taxation of intellectual property and intangibles but there is growing dismay that the consultation is taking far too long.

The Inland Revenue was unable to comment.

Links

Should IASs replace GAAP?

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

4d Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

3w 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