IFS Proposes Greater Parliamentary Involvement In Tax Law

by Robin Pilgrim, LawAndTax-News.com, London

27 March 2003

The Institute of Fiscal Studies' Tax Law Review Committee has released a report outlining proposed improvements to the way that the UK's Parliament approaches government tax proposals and legislation.

The Committee, chaired by Sir Alan Budd, reached the conclusion that Parliament must become more involved, and at an earlier stage in examining the government's proposed tax legislation.

Arguing that the government's plans should not be presented to Parliament as a fait accompli, whatever the pressures of time and circumstance, the Review Committee explained that: 'In effect, Parliament comes to the subject too late to discharge its duties. It has too little time and is without the motivation or resources to play any significant role.'

The report also suggested the creation of a Select Committee on Taxation with the remit of assessing the relative complexity of government tax proposals (rather than legislation which is before Parliament for enactment).

The working party of the Tax Law Review Committee was formed in response to concerns regarding the complexity of the UK's tax laws.

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