Thursday, 12 May 2011

Simples! - Two Steps Back

Simples!
The ACCA, having reviewed the first year in office of the coalition, have stated that the government has taken "two steps back for every one step forward" in simplifying the tax system.

Accountancy Age quote Chas Roy-Chowdhury, ACCA's head of taxation:

"The Government is committed to simplifying the tax system, which is commendable, but so many changes in one year don't help matters. Hopefully more changes now mean fewer later. If government really wants to simplify the system it needs to avoid tinkering at the same time as simplifying."

I am afraid that he has made a fundamental error in assuming that the government really wishes to simplify the tax system. Politicians thrive on complexity and tinkering.

For why?

They need to prove to the hapless voters that they have a purpose and a function in life, and divert the voters' attention, lest we realise that it is the politicians who have caused the mess in the first place.

Tax does have to be taxing.

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