The remit of the OTS should be the simplification of the tax system, covering all taxes for which HMRC is responsible, and should extend to simplification of both tax legislation and tax administration. Its objective should be to identify aspects of the tax system that could be simplified and to advise government how that simplification could be achieved. It should not, however, be directly involved in government policy-making decisions.
The opaqueness of the tax system could have significant consequences, including a generally low level of awareness and understanding by the public leading to inability to check tax calculations or spot when something is wrong highlights the importance of the OTS’s simplification work.
Although the OTS’s work has successfully translated into consultations and changes to the law and policy, the complexity of the tax system ‘has continued to get progressively and significantly worse and even had all OTS recommendations been implemented its effect would have been dwarfed by the torrent of new legislation’. New measures have continued to add burdens to businesses and individuals faster than small improvements have been made to existing processes.
Allowing the OTS to explore all areas of the tax system, including revisiting past reviews, and scoring recommendations and policies against a tax simplification framework would increase the likelihood of government taking forward OTS recommendations.
The OTS’s work could be divided into three areas: (1) periodic revisiting of proposals from earlier reviews to assess progress and any necessary revisions to recommendations; (2) reviews of areas not previously considered by the OTS (e.g. a review of the FA 2004 pensions tax changes, the tax implications of working from home and other flexible working arrangements); and (3) assessment of whether future legislation will introduce unnecessary complexity into the tax system.
The remit of the OTS should be the simplification of the tax system, covering all taxes for which HMRC is responsible, and should extend to simplification of both tax legislation and tax administration. Its objective should be to identify aspects of the tax system that could be simplified and to advise government how that simplification could be achieved. It should not, however, be directly involved in government policy-making decisions.
The opaqueness of the tax system could have significant consequences, including a generally low level of awareness and understanding by the public leading to inability to check tax calculations or spot when something is wrong highlights the importance of the OTS’s simplification work.
Although the OTS’s work has successfully translated into consultations and changes to the law and policy, the complexity of the tax system ‘has continued to get progressively and significantly worse and even had all OTS recommendations been implemented its effect would have been dwarfed by the torrent of new legislation’. New measures have continued to add burdens to businesses and individuals faster than small improvements have been made to existing processes.
Allowing the OTS to explore all areas of the tax system, including revisiting past reviews, and scoring recommendations and policies against a tax simplification framework would increase the likelihood of government taking forward OTS recommendations.
The OTS’s work could be divided into three areas: (1) periodic revisiting of proposals from earlier reviews to assess progress and any necessary revisions to recommendations; (2) reviews of areas not previously considered by the OTS (e.g. a review of the FA 2004 pensions tax changes, the tax implications of working from home and other flexible working arrangements); and (3) assessment of whether future legislation will introduce unnecessary complexity into the tax system.
