CIOT: Concerns over procurement process rules heeded

The Chartered Institute of Taxation (CIOT) has welcomed the government’s significant changes to the proposed rules governing how those firms applying for public contracts have to conduct their tax affairs.

The consultation attracted 50 responses in a very short time and the CIOT, in common with many other bodies, was very critical of the detail of the proposals.  Although the CIOT was supportive of the principle behind the plans – that those seeking government business should be compliant with the government’s rules, including tax rules – we felt  that the proposals were seriously flawed. They criticised them as retrospective, discriminatory, difficult to apply and likely to have unintended consequences.

CIOT President Patrick Stevens said:

“We are very pleased to see that the government has listened to the points we and other made.  We are very supportive of the concept – of ensuring that those gaining business from the public purse should be tax compliant. But rules that required a 10-year lookback were unfair and impractical and it is very pleasing to see that the rules will now effectively operate prospectively from this April.

“The changes in the response document answer virtually all our concerns. The result is something that should change future behaviour rather than penalising past errors, which is what we said should be the aim.”

Notes to editors

1.       The consultation on Tax & Procurement was launched on 14 February with responses due by 28 February. The CIOT’s response, together with the original government document, can be found at


The government’s response document is at


2.       The Chartered Institute of Taxation

The Chartered Institute of Taxation (CIOT) is the leading professional body in the United Kingdom concerned solely with taxation. The CIOT is an educational charity, promoting education and study of the administration and practice of taxation. One of our key aims is to work for a better, more efficient, tax system for all affected by it – taxpayers, their advisers and the authorities. The CIOT’s work covers all aspects of taxation, including direct and indirect taxes and duties. Through our Low Incomes Tax Reform Group (LITRG), the CIOT has a particular focus on improving the tax system, including tax credits and benefits, for the unrepresented taxpayer.

The CIOT draws on our members’ experience in private practice, commerce and industry, government and academia to improve tax administration and propose and explain how tax policy objectives can most effectively be achieved. We also link to, and draw on, similar leading professional tax bodies in other countries. The CIOT’s comments and recommendations on tax issues are made in line with our charitable objectives: we are politically neutral in our work.

The CIOT’s 16,500 members have the practising title of ‘Chartered Tax Adviser’ and the designatory letters ‘CTA’, to represent the leading tax qualification.

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George Crozier
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