How to get a complicated tax system. By Simon Sweetman

Posted by AccountingWEB PM | on Fri, 26/10/2007 - 12:44 4216 3 comments

The growth of complexity in tax is not a simple story, but it usually comes from:

Anti avoidance provisions
A political purpose to encourage particular behaviour by a particular group
The granting of concessions / let outs for those seen to be worthy

Let’s think about Capital Gains Tax (CGT). Originally this was a straight charge of 30%, with an initial base cost at 5 April 1965 (the date the tax was introduced).

Continued...

Which is why we need principle based legislation.

richard.murphy | Sat, 27/10/2007 - 20:22 | Permalink

This is called for in the Tax Justice Network Code of Conduct for Taxation, available here. http://www.taxresearch.org.uk/Blog/2007/10/18/the-tax-justice-network-code-of-conduct-for-taxation/

Richard Murphy

How do you get a complicated Tax System

AnonymousUser | Tue, 30/10/2007 - 07:41 | Permalink

Answer: you entrust your taxation policy to the politcally motivated lawyers[ usually ], who run the accounts department of UK Ltd.

When it comes dowen to it, it is down to the government. Who else?

Gordon LOVES complexity-it provides smoke and mirrors-and his present glove puppet will not be allowed any leeway.

I believe there has never been an accountant as chancellor. Perhaps we should give one a chance, if we can find a sufficiently articulate person? He could not do worse!

If it's of any help Michael

richard.murphy | Tue, 30/10/2007 - 13:31 | Permalink

I've already written a Chancellor's speech...

http://www.taxresearch.org.uk/Blog/2007/10/15/just-imagine-my-pre-budget-speech/

Richard Murphy