CIOT criticises planned tax legislation

The government needs to start afresh with its planned legislation that will apply to tax agents seen to be carrying out deliberate wrongdoing.

According to the Chartered Institute of Taxation (CIOT), the current proposals should be scrapped, as they could result in tax advisers not acting illegally being subject to prosecution.

Under the laws, a financial adviser encouraging a client to invest in an ISA or a charity asking a donor to sign a gift aid form would all be liable for prosecution, as their actions would amount to the Treasury making a tax loss.

’This is patently absurd,’ stated tax policy director at the CIOT John Whiting.

’We cannot emphasise enough how strongly we feel that this legislation needs to be rethought and rewritten. The government need to start again with these proposals,’ he added.

The CIOT is the UK’s leading tax specialist body and exists to promote the education and administration of tax issues.ADNFCR-2318-ID-19707638-ADNFCR