The Office of Tax Simplification (OTS) has published a progress report on its current review of the corporation tax computation, for which terms of reference were published in May 2016. Having identified a number of areas where potential exists for simplification, the OTS now invites comments on these areas for the second phase of its work. Emerging themes so far identified are:
the many adjustments between accounting profit and CT profit: burden vs value?;
ways of relieving or incentivising capital expenditure: complexity and certainty;
the ‘schedular’ system: including whether the distinction between trading and investment companies is still relevant and the extent to which capital gains are paid by companies;
making tax digital: where this creates opportunities for a simpler regime;
reporting and compliance processes that could be simplified;
the distinction between small and large companies:
simpler tax for smaller companies; and
streamlining tax processes for large and complex companies; and
international aspects: examples we can learn from where other regimes have implemented simplifications to their CT systems.
The OTS would like to hear from companies, advisers and others about whether these themes are the most relevant and beneficial areas to focus on, and proposals for any other areas deserving of attention.
Responses should be sent by the end of 2016, if possible. The final report and recommendations are due to be published before Budget 2017.
The Office of Tax Simplification (OTS) has published a progress report on its current review of the corporation tax computation, for which terms of reference were published in May 2016. Having identified a number of areas where potential exists for simplification, the OTS now invites comments on these areas for the second phase of its work. Emerging themes so far identified are:
the many adjustments between accounting profit and CT profit: burden vs value?;
ways of relieving or incentivising capital expenditure: complexity and certainty;
the ‘schedular’ system: including whether the distinction between trading and investment companies is still relevant and the extent to which capital gains are paid by companies;
making tax digital: where this creates opportunities for a simpler regime;
reporting and compliance processes that could be simplified;
the distinction between small and large companies:
simpler tax for smaller companies; and
streamlining tax processes for large and complex companies; and
international aspects: examples we can learn from where other regimes have implemented simplifications to their CT systems.
The OTS would like to hear from companies, advisers and others about whether these themes are the most relevant and beneficial areas to focus on, and proposals for any other areas deserving of attention.
Responses should be sent by the end of 2016, if possible. The final report and recommendations are due to be published before Budget 2017.
