Quality over speed approach welcomed by CIOT

The Chartered Institute of Taxation welcomed the draft legislation to implement a global minimum rate of tax for large multinational companies published as part of the legislation day announcements. 

Due to the complexity of the legislation the institute also applauded the government’s decision to implement the reform at the end of 2023 rather than April 2022 as was initially suggested.

John Cullinane CIOT director of public policy said: ‘The global agreement on a minimum rate of corporation tax is historic but making it happen is complicated. The legislation for a new “multinational top-up tax” is long and complex and the new rules will pose big administrative and compliance challenges for tax authorities and affected businesses alike.’

The institute also welcomed the publication of the draft legislation for consultation which affords an opportunity for early scrutiny. ‘It is more important to do this right...