IOD Tax Expert Advises Poland Following Finance Minister's Departure

by Jason Gorringe, Tax-News.com, London

03 September 2001

The deputy head of the Policy Unit at the Institute of Directors, Richard Baron, was in Poland last week, speaking at the tax conference of the Polish Confederation of Private Employers.

Following the recent departure of the country's Finance Minister, Mr Baron acknowledged firm action was required in the face of the huge budget deficit, but cautioned that the Polish government needed to continue to build a business friendly tax system, and should not be panicked into increasing the tax burden on the business sector.

'Poland now faces some very serious challenges,' he observed. 'Let us hope that the government, supported by the parliament to be elected in September, remembers that only flourishing business, working within a business friendly tax system, can restore stability to the public finances.'

He then went on to draw some examples from the British process of tax reform, looking at the both the positive aspects and negative experiences. On the plus side, he said, Britain has been steadily moving towards lower taxes on a wider base. On the other hand, however, the lack of a coherent strategy on the taxation of multinationals has led to a great deal of confusion regarding double taxation.

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