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Tax experts urge against retrospective taxation
Tax experts in the UK are urging the British government to oppose retrospective taxation.The Chartered Institute of Taxation (CIOT) have warned making such changes in line with new tax laws damages public confidence in the current system.
Vincent Oratore, CIOT president, explained this could cause damage to the economy of the country as a whole, particularly in the wake of the global financial downturn.
He said: "It must be very sparingly used: retrospection is damaging to confidence in the tax system as it undermines the principles of stability and certainty."
However, the body has claimed while it doesn't oppose retrospective taxation in every circumstance, such measures should be "used with extreme care" and the government should generally oppose such tax systems.
The recent Mirrlees Review of UK taxation – which was published by the Institute of Fiscal Studies – recommended the tax treatment of employment, self-employment and corporate source income should be aligned.
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