Details

  • Service: Tax, International Corporate Tax, International Executive Services
  • Type: Regulatory update
  • Date: 1/20/2012

United Kingdom - Bonus and salary review; financial reporting of income tax; anti-avoidance legislation 

January 20:  Businesses and employees will currently be considering salary reviews, bonuses, and incentives, taking into account the motivational aspects of planned payments in March and April 2012, and given high current tax rates, how to retain and engage the right employees.  With respect to such payments, taxpayers need to consider the tax effects of changes to employment and pension rules.

In December 2011, an advisory body to the International Accounting Standards Board (IASB) issued a discussion paper on improving the financial reporting of income tax. The aim of the report is to influence the future direction of accounting standards by obtaining feedback from users and preparers of accounts. The discussion paper was issued in response to certain criticisms that the information provided in relation to income tax by IAS 12 is not particularly useful and is too difficult to apply and understand.


In a Written Ministerial Statement to the House of Commons on 12 January 2012, the Exchequer Secretary to the Treasury announced targeted tax avoidance legislation, which is effective with respect to payments made and events occurring on or after 12 January 2012, to block tax avoidance planning that involves post-cessation trade relief.


to read a January 2012 report prepared by the KPMG member firm in the UK, discussing these topics: Weekly Tax Matters (January 20)




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The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


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+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

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