UK's Chartered Institute Of Taxation Urges Government To Simplify Tax Rules

by Amanda Banks, Tax-News.com, London

03 August 2001

The Chartered Institute of Taxation (CIOT) has issued its representations for the Budget 2002 with a resounding demand for simplification. Complexity in the tax code, argues the CIOT, has reached the point where there is a danger of serious malfunctions in the operation of the tax system. This affects tax authorities in their administration and taxpayers in meeting their obligations and understanding their rights.

According to the Institute's representations paper, the government can address the issues 'without further delay', by dealing with them in two ways:

• reviewing, simplifying and consolidating existing legislation
• ensuring that new policies and legislation are drafted with simplification in mind

In a statement released by the CIOT, Chairman Vincent Oratore said: 'We focus on the special problems that complexity brings to small businesses acknowledging the role that such businesses play in the "enterprise and productivity" which this Government wants to encourage. We are aware of the work on simplification which is already being done in this area but feel that it is not going far enough.'

He added: 'Knowing the Government's stated aim of making "the UK the best place in the world to start and run a business," we also suggest various individual areas of tax legislation which we think should be modernised in the next Finance Bill and which we believe would help to achieve this aim.'

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