I have long believed that our tax system is too complicated. We can all debate about the merits of one tax over another, and argue about the relative cost to the taxpayer of the different taxes, but it is all too complicated. My view is that has to change and that a dynamic economy is one that has simpler and flatter tax. So I am therefore very excited by what George Osbourne has been talking about recently. Here is a flavour of what he had to say:
Our tax code is probably the most complex in the world. It is certainly the longest - we overtook India for that dubious honour following last years Finance Bill. The size of Tolleys tax handbook has doubled over the last ten years. Complexity is also incredibly costly a survey by the Institute of Chartered Accountants found that the total cost to UK businesses of implementing new legislation is £10.2bn. That is why we are working with the experts to do the long term thinking on simplification. With PWC on simplifying corporation tax. And with Grant Thornton on simplifying income tax and National Insurance, and the administration of VAT. And it is why the final aspect of the proposals being examined by Geoffrey Howes group will be so important the establishment of a new Office of Tax Simplification with a remit to examine the existing tax system and make proposals for simplification. With a permanent staff of tax specialists aided by secondees from the tax professions, this will create a powerful institutional momentum towards a simpler tax system.
ConservativeHome’s ToryDiary: George Osborne promises simpler and flatter taxation
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