Friday, July 11, 2008

Warning of revolt over tax

Small businesses are so ang-ry about the tax system that their willingness to comply with their legal obligations is in jeopardy, according to a group representing contractors and consultants.

The Professional Contractors Group called for an overhaul of the tax regime, which it said suffered from complexity, uncertainty and "sometimes strange and inconsistent tax outcomes". It also attacked the retroactive impact of recent changes or proposals, such as the simplification of capital gains tax and rules designed to stop "income shifting" in family-run businesses.

It said: "In order to disguise high levels of taxation, the government has complicated the system substantially, and also become more aggressive in attempting to extract the maximum revenue from existing rules."

It warned that taxpayers' willingness to comply with legal obligations would weaken as unhappiness increased. "PCG fears that small business taxation in particular is getting close to this dangerous territory."

~ more... ~

 

Posted by Peacedream

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