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The Chartered Institute of Taxation (CIOT) has called on the Chancellor to instigate a moratorium on further major changes to the tax system.
Alistair Darling’s 22 April Budget would be wise to consolidate existing legislation and proposals, said the organisation, rather than introduce new measures during an economic downturn.
The CIOT expressed its concerned that new proposals, however well-intentioned, would increase the administrative burden on taxpayers, at a time when businesses in particular need to concentrate on matters already at hand.
When the Government looks at the tax system they should take into account three underlying principles: simplicity, fairness and certainty, added the institute.
Firms and individuals need stability, remarked president Nick Goulding.
‘Part of achieving that is to ensure there is certainty and that the Government works towards a simpler and fairer tax system.
‘If the [Chancellor] wants to help people by using the tax system, reform needs to be thought through very carefully. A less complex system would be one way to make things easier for the taxpayer,’ said Mr Goulding.
‘There are many proposals already in progress – [the scrutiny of] foreign profits and the continuing review of HMRC’s powers being the biggest – to give taxpayers and their advisers plenty to deal with as they grapple with the downturn.’
