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Government should be careful over income shifting plans
Posted Nov 20, 2008
The Chartered Institute of Taxation (CIOT) has said that in these turbulent economic times, it is more important than ever that the Government tackles "income shifting" in a careful manner.
The CIOT has long argued for a fundamental review of small business tax as this would help resolve many inconsistencies including reducing the effect of the shifting of income.
Peter Fanning, Chief Executive at the CIOT said:
"The CIOT welcomes the fact that both BERR and HMRC are looking at how they can help small businesses. Given that the original income shifting proposals were aimed at only on a tiny percentage of Owner Managed Businesses in the UK but would impact on a large proportion of them, the administrative burden would far outweigh the limited tax take."
The CIOT welcomes the opportunity to work with HMRC in developing a tax base that satisfies both the taxpayer and the tax administrator.
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