TAX CHIEFS are calling on the government to take a stance of general opposition to tax rules being changed retrospectively.
A discussion paper published today by the CIoT warns that overhauling tax law retrospectively damages confidence in the tax system, with the knock-on effect of harm to the British economy.
The CIoT believed that certainty about the tax people will pay when they follow the rules in operation at a particular point in time was one of the most important elements of a good tax system.
CIoT president Vincent Oratore added:
“[Retrospective changes] must be very sparingly used: retrospection is damaging to confidence in the tax system as it undermines the principles of stability and certainty.
“In an internationally competitive world, frequent retrospection would reduce the attractiveness of the UK to potential inbound investors.”
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