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.”