TaxCorporate TaxTax system “not yet moving towards simplification”

Tax system "not yet moving towards simplification"

The Treasury select committee welcomed measures in the Budget to simplify the tax system, but said that they have simply slowed the increasing rate of complexity

MUCH MORE WORK is needed before the tax system is said to be moving towards simplification, MPs have said.

The Treasury select committee’s report on the Budget said that measures taken by chancellor George Osborne had slowed “the rate of increase of complexity”.

The MPs said they “recognise that it is very difficult to simplify an already complex system” and welcomed the establishment of the Office of Tax Simplification. “However, the primary duty for securing simplification should lie with the Government in its design and administration of the tax system,” the report added.

The committee also said that the proposal to merge National Insurance and income tax is likely to generate some benefits for the operational aspects of the revenue streams. However, “it falls well short of the more fundamental merger that had been anticipated in the press in advance of the Budget speech”, they added.

“This is a complex issue and we understand the chancellor’s desire to move cautiously. The change appears to have been anticipated as a radical measure but turned out, at second glance, to be a modest one,” the report said.

Related Articles

OTS report: Corporation tax should follow accounts

Corporate Tax OTS report: Corporation tax should follow accounts

5m Alia Shoaib, Reporter
Markets expected to respond positively to US policy changes

Corporate Tax Markets expected to respond positively to US policy changes

7m Alia Shoaib, Reporter
Five key tax and business burdens the chancellor must ease in Autumn Statement

Business Regulation Five key tax and business burdens the chancellor must ease in Autumn Statement

1y Kevin Reed, Writer
OTS seeks feedback on tax simplification strategy

Accounting Standards OTS seeks feedback on tax simplification strategy

2y Fraser Simpson, Reporter
UK has ‘vital role to play’ in beating tax evasion, declares Panama Papers whistleblower

Corporate Tax UK has ‘vital role to play’ in beating tax evasion, declares Panama Papers whistleblower

2y Fraser Simpson, Reporter
An 'incomprehensible and contradictory' Budget

Accounting Firms An 'incomprehensible and contradictory' Budget

2y Richard Crump, Writer
OTS outlines income tax and NI alignment plans

Corporate Tax OTS outlines income tax and NI alignment plans

2y Fraser Simpson, Reporter
Tax code complexity could damage economy, warns think tank

Corporate Tax Tax code complexity could damage economy, warns think tank

2y Fraser Simpson, Reporter