CIOT: Government proposals should apply automatically

Date: 23rd February 2010

It is "disappointing" that the principles stipulated in the government's recently-published draft tax framework for businesses will not apply automatically.

This is the view of the Chartered Institute of Taxation (CIOT), which has voiced concerns that the principles will only be applied "where possible".

The comment follows the recently-announced draft, which the Treasury said was intended to provide a degree of certainty on the UK's tax regime for businesses.

CIOT president Andrew Hubbard said: "I welcome this document, which sets out sound and sensible principles to be followed when making tax policy. However, the test will be not just what the government say, but what they do.

"It is good news that the government is thinking about the principles of good tax law. But the key will be making sure these are applied in practice. Actions speak louder than words."

According to the government, the key principles of the new framework include "securing fairness, competitiveness and stability for the UK, and ensuring new burdens and complexities are not created for UK business".