ICAEW’s Tax Faculty has warned that a widespread belief that some businesses can pay less than their fair share of tax can undermine confidence in the tax system. An eight-page paper titled ‘Taxing corporate profits: hard choices’ had not been published on the ICAEW website as Tax Journal went to press, but its author Andrew Gambier posted a link on Twitter on 20 December.
‘Low tax morale damages public finances,’ the paper said, adding that there were ‘good practical reasons’ for taxing company profits. The OECD’s project on base erosion and profit shifting sought to ‘ensure that all business profits are taxed somewhere’. Read more on the Tax Journal website.