Tax system needs simplification: CIOT

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Tax system needs simplification: CIOT

Fri 13th Jul 2007

The simplification of the tax system under the new chancellor should be a priority for the government, the Chartered Institute of Taxation (CIOT) has commented.

A spokesperson for the group, John Cullinane, chairman of the corporate sector sub-committee and former president of the CIOT, decried the fact that the UK has the longest tax code in the world.

As well as the system being a "source of great unfairness", Mr Cullinane also identified how the present system was very confusing.

"No-one can really keep the whole thing - even the broad principles - in their heads, because it's just one rule after another and it doesn't have many broad principles."

Mr Cullinane also suggested that the lack of unification of the tax system could be detrimental to the system as a whole.

"So it means that people just don't know where they stand and that is true for the large multi-nationals who are investing in the UK to people on tax credits," he said.