Tax avoidance rules to cost Big Four £1m each
Partners in the Big Four have estimated that the new clampdown on tax avoidance will cost their firms an extra £1m each a year to comply with the new rules.
Tax partners at the Big Four sharply criticised the proposed new rules for being unclear, The Independent reported.
They also said the Revenue would be swamped with forms from firms because the new regulations do not make it clear what must be disclosed.
John Whiting, tax partner at PricewaterhouseCoopers is quoted as saying: ‘If there is any doubt, we will send the plans to the Inland Revenue. We will be sending a haystack of disclosures, leaving them looking for a needle.
Loughlin Hickey, KPMG’s head of tax was equally critical saying the ‘aggressive and burdensome’ tax compliance rules could hit investment in the UK.
Under the new rules, accountancy firms are obliged to register tax schemes that they offer to clients with the Inland Revenue.