Future work
7. In future work we plan to look at how the
Departments have addressed the above concerns, in particular,
what they have done to:
- Define and establish clear accountabilities,
and deliver on commitments to develop and introduce a framework
for effective assessment, management and reporting of tax reliefs.
- Provide proportionate feedback, and analysis
to Parliament, on the costs of principal tax reliefs each year,
including significant changes in costs.
- Define which reliefs are tax expenditures, and
improve the management, evaluation and reporting on the performance
of tax expenditures to Parliament.
- Report regularly to Parliament on the development
of new tax avoidance products and the action being taken to mitigate
their impact.
- Develop stronger checks and balances, to guard
against the increasing complexity which is created by adding continually
more reliefs.
- Dedicate sufficient resources to implement the
policy, to simplify the tax system.
- Analyse and report clearly why the cost increases
identified in paragraph 7 have occurred.
The annex to this report contains a set of good practice
principles, which we believe a framework for the effective management
of a well-designed tax relief, and system of reliefs, would include.
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