U.K. Has Unwinnable Battle on Tax Avoidance, Panel Says

Tax evasion has been an issue for many countries around the world because of the difficulty of tracking all funds. The U.S. government has implemented and revised various plans that would eliminate loopholes. However, the United Kingdom has been struggling to find the perfect solution. House of Commons Public Accounts Committee (HMRC) is aiming to increase transparency among private companies. Multinational businesses are reluctant to reveal their books because they would have to follow tax regulations for every country they operate in.  The committee also supports the idea of simplifying tax laws to eliminate businesses’ attempt to avoid paying taxes. The complexity of the system discourages taxpayers from understanding and agreeing with the system.

This situation is very similar to the one that the U.S. is currently dealing with. Analysts find that accounting firms have created multiple tiers of advisory and procedures that makes the system complicated. Although tax laws continue to prevent people from evading taxes, there is little improvement within the system. It will take time for the government to simplify the system because many lobbyists support this complex system.

 

Written By: Melody Mark

Source:

Penny, Thomas. “U.K. Has Unwinnable Battle on Tax Avoidance, Panel Says.” Bloomberg. Bloomberg L.P., 25 Apr. 2013. Web. 26 Apr. 2013.

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