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Chancellor announces creation of tax simplification office

Chancellor George Osbourne yesterday announced the creation of the Office for Tax Simplification (OTS). The objective of the OTS will be to provide the Treasury with advice on how to reduce the complexity of the tax system, which it is hoped will stimulate the private sector and the recovery as a whole.

Turcan Connell's Director of Tax Services Ian McGowan said:

"The suggestion that an Office for Tax Simplification (OTS) should be established comes from a recently published report by Lord Howe – ex chancellor – suggesting the OTS should be created to look into ways of cutting down the amount of tax legislation and restore public confidence in the tax system.

"Lord Howe – evidently supported by George Osborne – appears to believe that there have been recent examples of ill-thought out legislation having been rushed through Parliament which has had adverse implications for particular sectors and for the wider economy. One of the aims of office for simplicity would be to scrutinise Government policy and to then make recommendations based on that policy with a view to delivering simpler more transparent tax legislation.

"If successfully established and if it achieves the aims set out in Lord Howe’s report, the initiative is to be welcomed especially if, as Lord Howe suggests, the OTS should seek to access the expertise of tax professionals. I think most tax accountants and lawyers, as well as the tax paying public, would welcome this and would appreciate real simplification especially if it removes many of the grey areas which we currently face and leads to greater clarity."  

To read David Maddox's article from today's The Scotsman on the Office for Tax Simplification, which features comment from Ian McGowan, please click here.

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