More stability and less change
needed
ICAS welcomes both the
commitment to introduce a broad exemption for foreign
dividends, which should support the stability and
competitiveness of the UK economy, and short term
measures designed to help businesses survive the
recession.However, it deplores tax changes likely to
discourage employment or impose unwelcome additional
tax burdens.
Bob Crawford, convener of the Institute's Tax
Committee, said:
“Even in a crisis,
short term measures to assist businesses and
individuals should be consistent with a considered
policy which will strengthen the UK economy in the
longer term. The proposed increases in National
Insurance contributions will discourage employment at a
time when there is a need to preserve jobs.Temporary
reductions in VAT will help financial institutions by
reducing costs and could bolster the profitability of
other businesses, but will impose extra administrative
burdens to many small businesses and may not give the
economy the boost it needs. While a new higher rate tax
band would be a political measure, restricting personal
allowances for those with high incomes adds unjustified
complexity to the tax system.
“We have urged the
Government to recognise that the UK tax regime is
excessively complex and needs to be simplified. Some
companies have moved abroad to escape uncertainties
caused by the high costs of doing business here and the
lack of a clear tax strategy. More stability and less
change are needed to build confidence. While bold
financial measures may be required at such a time,
confidence could be reinforced by simplifying taxes and
adhering to a clear long term fiscal
strategy.”
Notes to Editors
-
The Institute of
Chartered Accountants of Scotland (ICAS) is the
world's first professional body of accountants,
receiving its Royal Charter in 1854. ICAS has over
17,000 members worldwide and in the UK the CA
designation is reserved exclusively for their
use.
-
Under the Royal Charter,
the Institute works in the public interest. The
objective of ICAS is to uphold the integrity and
standing of the profession of chartered accountancy
in the interests of society and the membership,
through excellence in education and the development
of accountancy and through service to members and
the enforcement of professional standards.
-
ICAS is the only UK
professional accountancy body to both educate and
examine all of its students. The CA qualification
is known around the world for consistency and high
standards and ICAS enjoys a widely recognised
reputation for providing the 'gold standard' in
accountancy education.
-
ICAS is a member of The
Global Accounting Alliance (GAA) – an
alliance of the world’s leading professional
accountancy bodies, which was formed in 2005. The
GAA is intended to promote quality services, share
information and collaborate on important
international issues. It works with national
regulators, governments and stakeholders, through
member-body collaboration, articulation of
consensus views, and working in collaboration,
where possible with other international bodies,
especially IFAC..
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