Business faces a big increase in the administrative burden of dealing with tax law after Gordon Brown signalled the government would push ahead with changes on intra-company transactions and financing structures.
Business and accounting groups have warned the changes will result in a huge amount of bureaucracy, form-filling and record-keeping. Grant Thornton, the accountants, warned the moves represented a stealth tax as they would restrict the ability of businesses to take advantage of some Ј70bn of historical losses within UK group companies.
The chancellor signalled in the pre-Budget statement exemptions for small- and medium-sized enterprises (SMEs). But business is still disappointed the government has not given adequate consultation on the changes due to come into effect on April 1. "The government has ignored pleas for more time by business to adjust to what is going to be a significantly increased administrative burden," said Lynn Anthony, director at PwC...
