IoD Welcomes Tory Calls for Tax Simplification

1 June 2006

The Institute of Directors (IoD) today welcomed calls from Shadow Chancellor, George Osborne, speaking to IoD members in Manchester, to simplify the tax system. 

IoD Director General, Miles Templeman, said:

“Business is reeling under the complexity of the taxation system.  A recent survey compiled by the IoD found that two thirds of UK companies think the tax system has become more complicated over the last five years. Half of all respondents also claimed to be spending increasing amounts of money on tax planning and compliance.
“Complexity in the tax system absorbs resources, clouds commercial decisions and can make the UK a less attractive investment location.”
In addition to tax simplification, the IoD also called on the Shadow Chancellor to take up its call to cut Corporation Tax by two per cent which, the IoD claims, will stimulate economic activity and boost the UK’s economic competitiveness.
Miles Templeman said:
“Now is the time to make a two per cent cut in Corporation Tax, we have made the calculations and there is clear scope to make this reduction.  The corporate tax advantages once enjoyed in the UK have slipped over the last few years and major economies such as Germany, France and Italy have all reduced their rates whilst ours has remained the same.  The UK corporate tax rate is now above the OECD average.  If we are to remain competitive we must act now.”