The government wants larger sized businesses to start notifying HMRC if they find themselves in a situation where they’ve adopted an uncertain tax treatment.
However, the Chartered Institute of Taxation (CIOT) is calling for a rethink on these plans, as they believe the proposal is ‘unclear, unfair and will lead to onerous demand on affected businesses’.
The proposal is that businesses must notify any uncertain tax treatments to HMRC separately from their tax return.
John Cullinane, CIOT Tax Policy Director, commented, “As it stands, we are opposed to the introduction of this compliance obligation and encourage the government to rethink. Given the many challenges businesses are facing because of Covid-19, now is not the time to add to compliance burdens unless the measure is better justified.”
Thinking of appointing Dolan Accountancy?
Give us a call on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.
Email JaimeHe added, “This proposed compliance obligation is inherently unclear and unfair. Businesses would not be able to comply with it with any confidence or certainty that they have got it right: it is unreasonable to expect these taxpayers to form a judgement on what HMRC may or may not do.
“It is not encouraging for the cooperative relationships that HMRC is keen to foster with businesses if, even when a business embraces collaborative and cooperative compliance, the Government still imposes new rules which significantly increase the businesses’ compliance burden.”
To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.