Foreign profits – Devil in the detail
The Chartered Institute of Taxation (CIOT) welcomes the dividend exemption but it still has concerns over the worldwide debt cap: much of the detail of which will remain uncertain until the Finance Bill is published. Many of the issues with the debt cap proposals surfaced only when the original draft legislation was published last December.
The CIOT is pleased that the timing announced by the Chancellor recognises the need for some delay in the start date of the worldwide debt cap measures. This will allow companies time to understand these major changes and help provide certainty.
The CIOT commends the Government for ensuring that the foreign profits consultation process has been thorough and an example of how consultation should be done. The CIOT feels that significant improvements to the original proposals have been made as a result of this consultation.
Ian Menzies-Conacher, Chairman of the CIOT’s Technical Committee, says: “As with all such announcements, the devil is always in the detail, and until the Finance Bill is published this is unknown. While the consultation process has been exemplary, the Government has been working towards a self-imposed deadline and this may lead to further problems being identified when the legislation is available for study.”
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For press information contact Simon Goldie on 020 7340 0569 (direct line), 07879 497316 (mobile). Email sgoldie@ciot.org.uk
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