A new framework

HM Treasury has published its Tax Framework for Business document following the launch last year of a forum to examine ways in which the tax system could provide the long-term certainty multinational companies need considering the competitiveness and other challenges facing both business and government.

The Government says any tax changes will be considered against the principles of competitiveness fairness minimising distortions simplicity stability and certainty and compliance costs – although the new paper notes that ‘the relative weighting of these principles will vary depending upon the circumstances and as a result the Government will need to make trade-offs between them’.

To apply the principles the Treasury states it will:

• Consult ahead of proposed tax changes.
• Publish draft legislation in sufficient time.
• Assess proposals against the principles.
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