Chartered Institute of Taxation comments on Tax Minister’s Tax Day proposal

Commenting on Tax Minister Jesse Norman’s proposed Tax Day, outlined in correspondence between him and the House of Commons Treasury Committee (here), John Cullinane, Chartered Institute of Taxation’s Director of Public Policy, said:

“There is value in a Tax Day separate to the UK Budget in providing an opportunity for more focused scrutiny of tax measures and the general benefit of broadening the conversation about tax among the public. But we suggest the chances of a Tax Day leading to significantly better tax policy will be moderate at best without much wider reform of how tax policy is made.

“We are disappointed that the Treasury does not have any plans to update the current tax policy making framework. This is despite the often heard – and valid – criticism that it leads to major ‘rabbits from hats’ on Budget day unveiled with no prior consultation at all. These generally lengthen and over-complicate the tax code.

“We call on the Treasury to go further than a Tax Day and undertake more blue skies consultation in the tax policy field. This would promote better public education in tax matters and make it easier to tackle long-running problems in the tax system. A good example would be the issue of differential tax burdens on employment, on self-employment, and on engaging with people operating through incorporated businesses.”