Tax policy should:
1. be fair. We accept that not all commentators
will agree on the detail of what constitutes a fair tax, but a
tax system which is considered to be fundamentally unfair will
ultimately fail to command consent.
2. support growth and encourage competition.
3. provide certainty. [...] Certainty
about tax requires :
i. legal clarity: Tax legislation should
be based on statute and subject to proper democratic scrutiny
by Parliament.
ii. simplicity: The tax rules should
aim to be simple, understandable and clear in their objectives.
iii. targeting: It should be clear to
taxpayers whether or not they are liable for particular types
of charges to tax. When anti-avoidance legislation is passed,
due regard should be had to maintaining the simplicity and certainty
of the tax system.
4. provide stability [...]
5. The Committee also considers that
it is important that a person's tax liability should be easy to
calculate and straightforward and cheap to collect. To this end,
tax policy should be practicable. , Ibid, para 84
6. The tax system as a whole must be
coherent [...] Back
3
Tenth Report from the Treasury Committee, Budget 2011,
HC 897, para 2 Back