The Treasury Committee has published the terms of reference for an inquiry into UK tax policy and the tax base. The inquiry is designed to address “how tax policy is made, how tax collection is administered and how to address the vulnerability of the tax base”. The inquiry specifically requests comments on a number of recent tax policy initiatives, including the OECD’s base erosion and profit shifting (BEPS) project, the plans to make tax digital, and accelerated payments. In addition, the Public Accounts Committee has announced a separate inquiry on corporate tax deals.
The terms of reference for the Treasury Committee inquiry cover five key areas:
- The making of tax policy,
- The problem of the shrinking tax base,
- Radical solutions to the problem of the shrinking tax base;
- Other mitigations of the problem of the shrinking tax base(addressing tax avoidance and non-compliance); and
- The administration of tax.
The deadline for written submissions in response to the inquiry is 31 March 2016. Commenting on the inquiry, Rt Hon Andrew Tyrie MP, Chairman of the Treasury Committee, said: “There is a lot the government could be doing. Tax policy must be made more practicable and the tax system more coherent. Tax needs to be fair. It needs to provide more certainty and stability. There is a lot to do and a lot for the Committee to examine.”
In the wake of recent press coverage on corporate tax deals between large companies and HMRC, the Public Accounts Committee (PAC) has also
a separate inquiry on corporate tax deals. The session will take place on 11 February 2016 and will cover recent tax deals given to multinational corporations by HMRC, following the PAC report in November 2012 which highlighted Members concerns that HMRC were “not taking sufficiently aggressive action to assess and collect the appropriate amount of corporation tax from these
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