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Taxation draft criticised by industry body

Published on 23 Feb 2010 under category: legal

A taxation industry body has criticised the government's draft tax framework for business, because its principles will not necessarily apply 'in practice'.

The Chartered Institute of Taxation (CIOT) has  said that principles in the new framework are not reflected by recent changes in taxation law.

CIOT outline[s] several concerns including the use of retrospective action, the increasing complexity of legislation and the expanding role of HM Revenue and Customs (HMRC).

Despite calls for competitiveness in the taxation industry, HMRC is likely to receive new discretionary powers that could mean that it retrospectively interprets taxation law so it enforces the 'intention of Parliament', claims CIOT.

On the draft publication, Andrew Hubbard, president of CIOT, said: "The test will be not just what the Government say, but what they do. It is disappointing, for example, that the principles will only be applied to the development of tax policy 'where possible' - surely these are principles that should apply automatically?"

"It is good news that the Government are thinking about the principles of good tax law. But ...actions speak louder than words."

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