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Treasury moves to reassure big business

22 February 2010
Categories: News , Companies
Document sets out tax policy framework

The Government today moved to provide greater certainty for large companies about its approach to the development of tax policy.

A document published by the Treasury for consultation sets out a framework underpinning changes to the tax system, including securing fairness, competitiveness and stability for the UK, and ensuring new burdens and complexities are not created for the country’s businesses.

The short paper, developed in discussion with the Business-Government Forum on Tax and Globalisation, also covers the process that ministers follow when proposing amendments and additions to British taxation, including consultation wherever possible.

The Treasury says that this latest measure is a follow-on from the creation in April 2008 of an industry-Government forum to consider the long-term challenges faced by the tax system and how it can provide certainty for multinational companies.

Comments on the new condoc, Tax Framework for Business, should be sent to the Treasury by email.

The Chartered Institute of Taxation (CIOT) welcomed the document, but added that the real test will be whether its principles are applied in practice.

'It is disappointing, for example, that [they] will only be applied to the development of tax policy "where possible". Surely these are principles that should apply automatically,' remarked CIOT president Andrew Hubbard.

'It is good news that the Government is thinking about the principles of good tax law, but the key will be making sure these are applied in practice. Actions speak louder than words.'

Categories: News , Companies
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