TaxCorporate TaxFinance act gives FDs an unreasonable burden

Finance act gives FDs an unreasonable burden

What are "reasonable steps towards tax compliance?

What are “reasonable” steps to take to ensure you have appropriate systems in
place to reach the right compliance with the tax system? The quote marks around
“reasonable” are deliberate because it’s the very issue many finance directors
are finding themselves stuck on as they try meet the demands of government
legislation in the Finance Act 2009.

This year’s Budget saw new requirements for finance directors to sign off
personally on their tax accounting to ensure it was all above board. But as a
great raft of companies begin grappling with the new law in wake of 30 September
it remains unclear for many exactly what they have to do. The legislation,
experts report, is vague and unclear, giving few clues to the FD charge with
their implementation. Simply put, FDs have been left with completely inadequate
guidance on what constitutes “reasonable” steps.

This government has campaigned hard over tax. HMRC has taken up the task of
maximising tax revenue and stopping avoidance with great enthusiasm. But
collecting tax is not just about enforcement. It’s also about aiding taxpayers
to meet their obligations. This cannot be achieved without clarity and
requirements in the Finance Act on tax accounting are anything but clear. Indeed
without clarity its not entirely clear what the legislation is for. The
legislation was rushed and unfortunately the hard work and the risk now falls on
FDs. Perhaps this is one piece of legislation that needs overhauling as quickly
as possible.

Further reading

FDs lurch into unknown

Related Articles

Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

2m Alia Shoaib, Reporter
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

3m Austin Clark, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

3m Clear Books | Sponsored
CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

Corporate Tax CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

3m Austin Clark, Reporter
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

3m Emma Smith, Managing Editor
Should I incorporate my buy-to-let business?

Corporate Tax Should I incorporate my buy-to-let business?

4m Emma Rawson