THE UK’S TAX SYSTEM is not “fit for purpose” and requires a complete overhaul if it is to tax companies effectively, chief executives have warned.
PwC’s annual survey of CEOs revealed 73% of UK bosses feel the present system is unsuitable for the 21st century, while 71% believe attempts to reform it will be futile.
It is up to MPs to create a workable system, although the hold little confidence their efforts will produce any viable system, they added.
Three quarters of CEOs questioned claimed that paying a “fair share” of tax is a priority for their company.
Current OECD attempts to reform the international tax system would be unsuccessful in the next few years, according to two-thirds of respondents, far higher than the worldwide average of 40%.
“There’s been a lot of criticism around the tax arrangements they [companies] have put in place,” PwC UK chairman Ian Powell told The Telegraph in Davos.
“But actually, it’s become a political question, because as long as countries are trying to use tax rates as a way to bring jobs into their own country, you are going to get tax arbitrage.
“What CEOs are asking for is: can we get some clarity on this, and can we get more consistency on tax arrangements, which would make it a lot easier for them to handle their affairs.”
Andrew Tyrie suggests there will not be enough time to implement Making Tax Digital (MTD) by April 2018
The ACCA has announced a partnership with UK research and development tax reclaim specialist RD Tax Solutions
The tax HMRC expects is underpaid by large companies through “transfer pricing” has risen by 60%
The chancellor has “missed an opportunity” to restore business confidence and encourage UK investment, said Mazars