The benefits of tax transparency

In recent years the UK has been a global leader in encouraging transparency between the government and taxpayers. The government has focused in particular on banks which have been asked to adopt HMRC’s Code of Practice on Taxation.

I believe increasing transparency to further collaborative relationships between government and taxpayers is a laudable goal and a positive development for both governments and taxpayers. Improving these relationships is particularly important in the context of the corporate income tax because that tax is so singularly inefficient that mitigating even the procedural burdens associated with it is materially helpful.

In fact I believe that if taxpayers and tax administrations encourage fair and proportional tax enforcement and compliance systems through a transparent relationship they can enhance a country’s investment climate and thus have a favorable impact on the country’s...