CIOT: Parliamentary Joint Committee can strengthen scrutiny of tax law
The Chartered Institute of Taxation (CIOT) has today launched a call for improvements in the way the UK effects tax law changes. The Institute is seeking to start a wide-ranging debate on the reform of the way in which tax law is made; the CIOT believes that many facets of the process need improvement but a key part could be played by a new Joint Committee on Taxation, bringing together MPs and peers to form a new body to provide improved scrutiny of tax legislation.
In a paper published today, the CIOT argues that such a committee, backed up by a strong professional staff, could play an important role in reducing the amount of badly constructed laws. These can give some taxpayers unintended opportunities to avoid tax while others face unintended losses.
CIOT President Vincent Oratore said:
“The way tax law is made in the UK is deeply flawed. There is not enough expert scrutiny and there is insufficient parliamentary time to consider properly the effect that changes will have in practice.
“We have a historic and distinctive parliamentary system with traditions and conventions that need to be taken into account. But in this area I believe we can learn something from the Americans, who have a well resourced Joint Committee on Taxation which enables members of both Houses of Congress to play a meaningful and constructive role in the making of tax law.
“The primary responsibility of a UK Joint Committee on Taxation would be to review proposed tax law put forward by the government and to think through its policy and implementation implications, before issuing reports containing detailed analysis and recommendations. Such a committee would enhance the role of backbench MPs in this important area, as well as making greater use of the tax expertise in the House of Lords.
“The context is promising. There is a growing consensus among thinkers in this area – within Parliament, among tax professionals and among political analysts, researchers and constitutional experts – that the system could, and should, be better. There is a new government with a commitment to strengthening Parliament as part of what the Deputy Prime Minister has called ‘the most radical programme of reform, empowerment, enfranchisement in over a century’1.
“That is why I am making tax law reform , the key theme of my year as President of the Chartered Institute of Taxation. My aim over the next 12 months is for the Institute to provide a forum in which all those with an interest in tax law reform can contribute ideas and build consensus for the changes we need to make the tax system fit for the 21st century.”
The Chartered Institute of Taxation is inviting comments and contributions from all with an interest in tax law reform.
Notes to Editors
1. Taken from speech on political reform by Rt Hon Nick Clegg MP, Deputy Prime Minister, 19 May 2010
2. The Chartered Institute of Taxation (CIOT) is a charity and the leading professional body in the United Kingdom concerned solely with taxation. The CIOT’s primary purpose is to promote education and study of the administration and practice of taxation. One of the key aims is to achieve a better, more efficient, tax system for all affected by it – taxpayers, advisers and the authorities.
The CIOT’s comments and recommendations on tax issues are made solely in order to achieve its primary purpose: it is politically neutral in its work. The CIOT will seek to draw on its members’ experience in private practice, government, commerce and industry and academia to argue and explain how public policy objectives (to the extent that these are clearly stated or can be discerned) can most effectively be achieved.
The CIOT’s 15,000 members have the practising title of ‘Chartered Tax Adviser’.
Download a copy of The Making of Tax Law
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George Crozier
External Relations Manager
D: +44 (0)20 7340 0569
M: +44 (0)7740 477374
The Chartered Institute of Taxation
Registered charity number 1037771
www.tax.org.uk
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