TAX REFORMS VITAL TO END TAX COMPLEXITY AGREES ACCA
ACCA (the Association of Chartered Certified Accountants) says the recommendations published today by Lord Howe of Aberavon’s Working Party for the reform of the UK’s tax laws are timely and practical, offering solutions to bring back much-needed trust in tax arrangements.
Allen Blewitt, ACCA’s chief executive, comments: “The Working Party’s proposals are to be commended. They are sensible measures that aim to tackle the unfairness and uncertainty which has bedevilled the UK’s tax regime, especially in recent times.”
“Recently comparing the UK’s tax system with five other countries, research from ACCA revealed the UK’s regime to be bottom of the league table when it came to tax fairness and transparency. ACCA members who were quizzed for the research said this country’s tax arrangements are complicated and frustrating, but most importantly, they said there was a lack of trust in the system from business and personal tax payers alike. This lack of trust cannot continue.
“The Working Party’s suggestion that the timing of tax policy needs to be addressed is also highly relevant and crucial. There can be no more rushing through of last-minute tax legislation. Creating a culture of consultation and openness is therefore vital.
“That is why ACCA particularly supports the idea of the Office of Tax Simplification. But it must be more than a commentator or overseer of the tax system. Similarly, the cross-party Joint Parliamentary Select Committee on Taxation is a commendable suggestion. Again, both establishments must be seen to make change, not just talk about it, or the lack of trust in the UK system will still remain.”
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Notes to Editors
1. ACCA is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management. We have 325,606 students and 122,426 members in 170 countries worldwide.
2. ACCA believes that globalisation of business requires one set of reporting standards. We favour principles-based, not rules-based standards, which is why we support the worldwide implementation of IFRS.
3. ACCA believes that tax systems should be transparent, simplified, fair and certain.
4. Complying with regulations affects SMEs disproportionately, which is why ACCA urges governments and standard setters to ‘think small first'’.
For further information please contact:
For further comment about tax, please contact: Chas Roy-Chowdhury, ACCA Head of Taxation phone: +44 (0)20 7059 5976 / + 44(0)7710 707 516 e mail: chas.roy-chowdury@accaglobal.com
Helen Thompson, ACCA Newsroom phone: +44 (0)20 7059 5759 / + 44 (0)7725 498 654 e mail: helen.thompson@accaglobal.com