Concerns have been raised that additional reporting requirements relating to corporation tax may put an undue burden on many businesses.
Details of a number of new rules have been laid out in the Finance Bill 2017, with the Government arguing that the adjustments are designed to close loopholes and crack down on tax avoidance.
There will be a particular emphasis on scrutinising businesses which have set up tax structures offshore.
Any organisation which fails to comply with the new requirements will face civil sanctions and potentially penalties such as public naming.
Jane Ellison, the Financial Secretary to the Treasury, said: “We are recognised as having one of the world’s most effective tax regimes and this government is acting to ensure it continues to provide certainty for businesses, fairness for workers and a sound tax base.”
But many commentators are concerned that in attempting to crack down on businesses which may be attempting to cheat the system, ministers are also placing an additional administrative burden on the vast majority of firms which already comply with all the relevant tax laws.
A consultation on the new requirements will run until February 1st 2017, with the final details to be confirmed in next year’s Budget.
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