True accountability needed to tame UK’s unruly tax credits system
Today’s news from the National Audit Office (NAO) that up to £1.5bn of tax credits may have been overpaid is proof that the system is far too complex, says Chas Roy- Chowdhury, head of taxation at ACCA (the Association of Chartered Certified Accountant) today.
As the tax credits deadline of 31 July 2008 moves ever closer, Chas Roy-Chowdhury says:
“It is a shame the tax credits system continues to fail. Tackling these failures is a massive task, and recurring recommendations made by the Public Accounts Committee to rectify the problems of fraud and overpayment seem to have been ignored.
“The structure of tax credits is too complex. Benefits should be paid through a dedicated and professional benefits system, not through the tax system. The set-up has resulted in tax credits being one of the most complex aspects of the UK’s tax arrangements.
“But most importantly, fraud and overpayments have a serious knock-on effect for the UK taxpayer and also for the recipients of tax credits. Taxpayers and recipients deserve better and a system which is much more accountable.”
- ends -
Notes to Editors
1. ACCA is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management. We have 325,606 students and 122,426 members in 170 countries worldwide.
2. ACCA believes that tax systems should be transparent, simplified, fair and certain.
3. ACCA believes that globalisation of business requires one set of reporting standards. We favour principles-based, not rules-based standards, which is why we support the worldwide implementation of IFRS.
4. Complying with regulations affects SMEs disproportionately, which is why ACCA urges governments and standard setters to ‘think small first'’
For further information please contact:
For further information, please contact: Chas Roy-Chowdhury, ACCA head of taxation phone: +44 (0)20 7059 5976 / + 44(0)7710 707 516 e mail: chas.roy-chowdury@accaglobal.com
Helen Thompson, ACCA Newsroom phone: +44 (0)20 7059 5759 / + 44 (0)7725 498 654 e mail: helen.thompson@accaglobal.com