UK TAX SYSTEM is “dysfunctional” and “creaking at the seams” says CIOT head Anthony Thomas in a speech to members in Cambridge.
He called for “greater simplicity and clarity so people understand how much tax they should be paying and why”.
The head of CIOT‘s criticisms come after the issue of tax avoidance has hit the headlines, with public debate about a cap on charitable donation and the chancellor’s “shock” Britain’s wealthiest legally avoid paying the top rate of tax.
Thomas went on to say many of the comments made by politicians and HM Revenue & Customs‘ officials “simply muddy the waters, are regrettable and unhelpful”.
He added: “Statements which deliberately confuse tax evasion with tax avoidance do nothing to improve understanding of the way in which our tax system functions.
“When will politicians and senior revenue officials state clearly that tax evasion is illegal, tax avoidance is not?”
Thomas branded the media and political attention as “ill-informed, ill-conceived, ill-thought out, and often deliberately misleading”.
Companies reported increased levels of scrutiny over their tax planning strategies last year as fewer FDs understand what HMRC considers as tax avoidance, according to HMRC’s latest large business survey
Tax evaders are set to face tough new sanctions under plans detailed by HM Revenue and Customs (HMRC) today
HMRC has outlined a change in VAT policy to the treatment of dwellings that have been formed from either the construction of new buildings, or from the conversion of non-residential buildings
Let us hope that valuable asset protection vehicles are not made prohibitively burdensome or abolished in the desire to “simplify” IHT