Wednesday 5th December 2012
Commenting on the tax measures announced by the Chancellor today, Chris Morgan, head of tax policy, at KPMG said:
“This was a statement in which the Chancellor essentially said to business: ‘ we are committed to delivering a competitive and business-friendly tax system but you must play by the rules’. He unveiled some big tax ‘carrots’ today in the form of a surprise cut in the corporate tax rate, a tenfold increase in the annual investment allowance for plant and machinery, a rise in the personal allowance and the cancellation of the planned fuel duty increase.
“There’s a big ‘stick’ being wielded on those who don’t play by the rules. Next week we will see the details of the general anti-abuse rule and the Chancellor announced more funds for tackling tax avoidance. He also underlined his commitment to looking at how international tax rules operate in conjunction with other European governments. As a lively debate on corporate tax continues, it’s vital that business engages by being more transparent about the contributions they make.
“However, whilst the one percent cut in the corporate tax rate is undoubtedly welcome by most businesses, the extra money for this could arguably have been better used to fund infrastructure allowances to encourage private investment.”
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