UK Tax System Criticised By Scottish MP

by Jason Gorringe, Tax-News.com, London

06 December 2007

Scottish MP John Barrett has spoken out this week to criticise the complexity of the UK tax system.

Mr. Barrett, a Liberal Democrat MP for Edinburgh West, was speaking in light of a recent report which indicated that GBP1.5 billion in tax is paid late every year.

Earlier this week, Edward Leigh MP, Chairman of the UK's Committee of Public Accounts, issued a statement with regard to this barrage of late payments.

Mr. Leigh argued that:

“Far too many businesses are failing to file their Company Tax and VAT returns on time and to pay what they owe by the due date. The amount of tax revenue in doubt as a result was estimated a year ago at GBP1.5 billion per annum. HMRC must be much better informed about the types of business which tend to be late in filing and slow in paying up.”

Mr Barrett argued this week that: "This is a damning indictment of the sheer complexity of the current tax system."

“Gordon Brown’s obsessive tinkering with Britain’s taxes during his tenure as Chancellor has created a system no normal person can understand," he said.

He concluded by suggesting that:

“It is hardly surprisingly that many companies are failing to complete their tax returns on time, particularly when there has been widespread criticism of HMRC itself for the long backlogs it has in registering businesses for VAT."

“The Government can try as hard as it likes to encourage companies to file their tax returns on time, but the only way it will make a real difference is by making our tax system radically simpler and fairer."

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