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  • CBI @10am: Unpacking what 'Tax Day' means for businesses

CBI @10am: Unpacking what 'Tax Day' means for businesses

Recorded 24 March, in this session we unpack the 'Tax Day' from 23 March and discuss what this means for businesses.

24 Mar 2021, 2 min read

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Speakers:

  • Rain Newton-Smith, Chief Economist, CBI
  • Janine Juggins, EVP, Tax, Unilever
  • Dan Neidle, Partner, Clifford Chance
  • Jon Richardson, Partner, PwC
  • Liz Moseley, Editor and Partner, Tortoise Media (Chair)

Overview:

  • Overall - sentiment from across the panel that 'Tax Day' was a missed opportunity
  • Rain highlighted that while sensible to separate Budget and longer term tax proposals, overall, the announcements were not as strategic as we would have liked. In particular, we were hoping for more on fundamental reform of business rates and how tax system could help businesses transition to low carbon economy
  • However, Janine identified three consultations which would interest larger businesses:
    • First, uncertain tax positions which Govt consulted on last year was positive
    • Second, on providing more transfer pricing documentation with businesses looking to input to ensure response to proportionate
    • Third, large corporations to look at timing for tax payments particularly for SMEs and income tax - will help with cash-flow for firms.
  • Jon reflected variance in tone between cover note and what we actually received on 'Tax Day'. Simplified administration system, process but when you look a bit closer to home in short term it's actually opposite - quite a few additional burdens particularly around compliance pricing for example. Increase in burden for compliance getting bigger for larger businesses. discrepancy between vision and reality
  • Dan suggested that while promoted as a great strategic day of huge announcements - it wasn't. About tactics – HMRC have an anti-avoidance agenda and are primarily interested in bringing in real-time reporting and more alignment across the system on this for the purposes of identifying avoidance
  • Looking ahead - timeline is consultation over six months (each one is different), members should get in touch if they want to feed into CBI responses . The Autumn budget will provide some responses to these consultations. CBI looking out for more concrete action on business rates reform and move to low-carbon economy and a tax system which helps deliver that.

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