Businesses Want Simpler Tax System

Jack Humphrey, Regulatory journalist
September 24, 2010 /

The tax evasion in United Kingdom has been attributed to complex tax structure. In a survey done it has been revealed that about 53 percent of the British businessmen feel that the tax system of UK should be simplified and made more transparent in order to curb tax evasion. Another 46 percent of business owners want disclosure agreements to be done with overseas jurisdiction. Liechtenstein Disclosure Facility is being used as a model for formulating revised tax structure.

In the survey done by RSM Tenon it was also found that most of the businesses wanted government intervention for controlling tax evasion. According to the survey only nine percent of the business owners felt HM Revenue & Customs would have to invest more resources unnecessarily for putting a check on tax evasive practices.

The government has already introduced the general anti-avoidance rule (GAAR) to get hold of the defaulters. The GAAR would focus on zeroing on those offenders who have successfully managed to evade the legislations and have not paid their taxes correctly. This move was welcomed by 25 percent of the entrepreneurs.

The response from the entrepreneurs and the British in general has been good. According to Gary Ashford who is the head of tax risk, investigations and disputes at RSM Tenon the support which the tax policies have received is rare to be seen. In fact, RSM Tenon disclosed that the entrepreneurs were pleased that HMRC had taken the task of tackling tax evasion as one of their top priorities.

It is reported that the business owners are looking forward to a new simplified tax structure which would make the payment of taxes easy. They also asked the government not to levy taxes which were too heavy on the pockets of the entrepreneurs and thus prompted them to evade taxes.


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