The City of London Law Society’s Revenue Law Committee has bemoaned the government’s ‘lack of respect for legislation as the only proper source of law, and over reliance on guidance’ as a source of uncertainty in taxation policy, in its response to the Office of Tax Simplification’s review on tax competitiveness. The committee sees businesses within corporation tax, but too small to qualify for a customer relationship manager, placed at a disadvantage in dealings with HMRC. It also makes further recommendations in relation to corporation tax, VAT, income tax/NIC, stamp duty, SDRT and SDLT.
The committee expresses a broad concern, applicable to all taxes, that tax policymakers are insufficiently conscious of the importance of the rule of law. It also criticises the use of retrospective legislation, including against certain types of SDLT avoidance schemes and also against perceived avoidance structures in the field of corporation tax on loan relationships.
On tax policy making, the committee recommends the introduction of a formal check to the legislative process (an ‘Office of Tax Changes’), which would be independent of government in the same way as the OBR. This agency should have the power to prevent legislation being put forward in circumstances where it is not yet adequately formed, having regard to its proposed effective date.
The City of London Law Society’s Revenue Law Committee has bemoaned the government’s ‘lack of respect for legislation as the only proper source of law, and over reliance on guidance’ as a source of uncertainty in taxation policy, in its response to the Office of Tax Simplification’s review on tax competitiveness. The committee sees businesses within corporation tax, but too small to qualify for a customer relationship manager, placed at a disadvantage in dealings with HMRC. It also makes further recommendations in relation to corporation tax, VAT, income tax/NIC, stamp duty, SDRT and SDLT.
The committee expresses a broad concern, applicable to all taxes, that tax policymakers are insufficiently conscious of the importance of the rule of law. It also criticises the use of retrospective legislation, including against certain types of SDLT avoidance schemes and also against perceived avoidance structures in the field of corporation tax on loan relationships.
On tax policy making, the committee recommends the introduction of a formal check to the legislative process (an ‘Office of Tax Changes’), which would be independent of government in the same way as the OBR. This agency should have the power to prevent legislation being put forward in circumstances where it is not yet adequately formed, having regard to its proposed effective date.
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