The chancellor, Philip Hammond, made it clear that digital taxation comes before business rates in the government’s order of priorities, in his recent response to the chair of the Treasury committee.
The chancellor, Philip Hammond, made it clear that digital taxation comes before business rates in the government’s order of priorities, in his recent response to the chair of the Treasury committee.
In a letter dated 28 June, responding to the question put by Nicky Morgan, the committee chair, as to whether the Treasury has conducted any analysis into the competitive advantage for businesses that focus on online sales, the chancellor wrote: ‘I have been clear that we need to find a better way of taxing the digital economy, and we are making progress on this issue.’
Hammond reiterated the government's view that ‘international corporate tax principles need updating for the digital age to ensure they reflect the new ways businesses create value. It is right that we make further progress on this issue before considering the implications for the wider tax system, including business rates.’
The government’s 2016 review of business rates concluded that business rates should remain a property tax. ‘There was no consensus on an alternative base, and even those respondents that put forward alternatives were clear that these tax bases were not without their own issues,’ Hammond said. See https://bit.ly/2u5qKVV.
The chancellor, Philip Hammond, made it clear that digital taxation comes before business rates in the government’s order of priorities, in his recent response to the chair of the Treasury committee.
The chancellor, Philip Hammond, made it clear that digital taxation comes before business rates in the government’s order of priorities, in his recent response to the chair of the Treasury committee.
In a letter dated 28 June, responding to the question put by Nicky Morgan, the committee chair, as to whether the Treasury has conducted any analysis into the competitive advantage for businesses that focus on online sales, the chancellor wrote: ‘I have been clear that we need to find a better way of taxing the digital economy, and we are making progress on this issue.’
Hammond reiterated the government's view that ‘international corporate tax principles need updating for the digital age to ensure they reflect the new ways businesses create value. It is right that we make further progress on this issue before considering the implications for the wider tax system, including business rates.’
The government’s 2016 review of business rates concluded that business rates should remain a property tax. ‘There was no consensus on an alternative base, and even those respondents that put forward alternatives were clear that these tax bases were not without their own issues,’ Hammond said. See https://bit.ly/2u5qKVV.
