The UK tax system is not broken but we need to rebuild the public’s confidence that it is working, through greater transparency

26 April 2013

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EY comments on PAC report: Tax avoidance, the role of large accountancy firms

John Dixon, UK managing partner for tax at EY, commenting on today’s Public Accounts Committee (PAC) report, Tax avoidance, the role of large accountancy firms, said:

“The UK tax system is not broken, but we absolutely do need to rebuild the confidence of the public that the tax system is operating as Parliament intended. Greater transparency is fundamental to creating that confidence, as is the simplification of the UK tax code, which everyone agrees has become extremely complex. 

“Greater voluntary disclosure by companies is something we have long supported and on which we gave evidence at the PAC hearing in January. This includes the provision of more information regarding an organisation’s tax profile in order to give better quality insights for all stakeholders.

“UK corporation tax is only one of the taxes paid by companies. Consideration of the contribution of multinationals to the UK needs to include non-tax factors, such as additional employment and economic growth through substantial investment, as well as the other taxes and levies that are paid. 

“However, inherent in delivering a suitable competitive tax regime is the need to ensure that the tax system applies equitably and robustly. We welcome the PAC endorsement of a multilateral rather than unilateral approach to international tax policy reform.”