The Tax Simplification Attempt
Prof Avery Jones, from the institute of chattered accounting, once predicted that our tax system is an abstract being so complicated that soon it would depart from any reasonable sense. This was said in the 80s - and now, more than thirty years later we see that his predictions gave materialised to a substantial extent. Law-makers failed to consolidate tax provisions in order to simply the tax system and a recent study into the tax practices around the UK shows growing concern that the UK tax code has already become impossible to grasp by the people who follow it - the taxpayers.
The chart above indicates the results from the empirical study made by tax specialists at the end of 2011. It shows that nearly a third of the taxpayers in the country cannot meet their liabilities without obtaining increasingly expensive legal and financial aid. A very tiny fraction of these people are actually able to navigate through extensive and difficult legislation and again a small percentage of taxpayers can go through the ’simplified'tax codes provided by the HMRC.
Our tax system is an abstract being so complicated that soon it would depart from any reasonable sense! Avery Jones
The empirical evidence suggests that the majority of people face serious difficulties in paying tax. Furthermore, those wealthy enough to afford legal aid can actually exploit the loopholes in the tax system and avoid taxation on the whole of their corporate and personal incomes. Therefore, a sensible man would conclude that the complexity of the tax law is favorable for the rich as they are the ones capable of fighting back the tax system whereas the ordinary taxpayer suffers a complete lack of comprehension towards the taxation rules in the country. Since everybody pays tax (from heating oil traders to ordinary working men in the various industry sectors) the government has failed to afford these people a facilitation of their liabilities in the form of comprehensible and easily accessible tax code.
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