TaxCorporate TaxMPs recommend greater policy role for tax professionals

MPs recommend greater policy role for tax professionals

The Treasury select committees report into the principles of taxation has called for greater analysis from tax professionals before enacting legislation

THE TAX PROFESSION should be able to scrutinise how a policy change is to be implemented in its legislative phase, a group of influential MPs has said.

The Commons’ Treasury select committee released its report on the principles of taxation today. It recommended that the government should produce a detailed assessment of the way in which any proposed new tax, or change to a tax, would be implemented before it becomes legislation.

Such analysis would “enable the tax profession to assess their quality and alert government to shortcomings”, the report said.

The practicability of new laws should be fully understood at the time, the review added, and the compliance costs and ease of collection should be quantified. These can then be compared with outcomes over time.

The report also said that sudden and unexpected change in tax policy is harmful to business. It urged against sudden wholesale reform of the system.

The committee also advised that using taxation to support wider policy goals “should not be ruled out”, but added indiscriminate use of taxation may increase the complexity of the system.

Committee chair Andrew Tyrie (pictured above) said: “Governments should be wary about using tax policy as a substitute for direct policy measures, doing so only after careful analysis shows it to be the most effective tool.

“In setting taxes, governments should be alert to the effects tax policies will have on economic growth.”

Related Articles

Spring Budget 2017: ‘Not a nice Budget for SMEs’

Corporate Tax Spring Budget 2017: ‘Not a nice Budget for SMEs’

9m Emma Smith, Managing Editor
Top five takeaways from Spring Budget 2017

Corporate Tax Top five takeaways from Spring Budget 2017

9m Emma Smith, Managing Editor
Spring Budget 2017: Making Tax Digital

Business Regulation Spring Budget 2017: Making Tax Digital

9m Shereen Ali, Deputy Editor
Live blog: Spring Budget 2017

Corporate Tax Live blog: Spring Budget 2017

9m Accountancy Age editorial
Top five talking points for Spring Budget 2017

Corporate Tax Top five talking points for Spring Budget 2017

9m Emma Smith, Managing Editor
Income tax reduction top priority for businesses in Spring Budget

Corporate Tax Income tax reduction top priority for businesses in Spring Budget

9m Emma Smith, Managing Editor
What can we expect from Spring Budget 2017?

Corporate Tax What can we expect from Spring Budget 2017?

10m Emma Smith, Managing Editor
Budget is a 'springboard' for tax policy reform, says new report

Corporate Tax Budget is a 'springboard' for tax policy reform, says new report

11m Stephanie Wix, Writer