Commenting on the report from the Treasury Select Committee which calls for a review of the cost of tax reliefs, BDO head of tax dispute resolution, Dawn Register, said: “Tax reliefs have an important role to play in promoting economic growth, attracting inward investment and advancing specific policy outcomes.
“However, with over 1000 tax reliefs in operation, the risk of inadvertent mistakes is huge – and as we’ve seen recently with respect to R&D tax relief, the opportunity to exploit and abuse certain benefits remains significant. Technology-enabled and cross-border fraud also pose particular challenges for the tax authority.
“We therefore welcome today’s call from the Treasury Select Committee for a thorough review of tax reliefs and we wholeheartedly support the Committee’s recommendation for greater simplification in the system. This would go a long way towards increasing transparency which would allow better targeting of reliefs and both legislative and enforcement action to curb their abuse.”
