Critics target rushed Finance Bill

News Article - 26 April 2010
Category: Business

Criticism has been levelled at the Government's Finance Bill, which was rushed through parliament earlier this month. Advisers and industry commentators have panned the bill - which officially gives HMRC the ability to collect tax in 2010/2011 - due to the inclusion of controversial measures and the lack of democratic debate in the Commons.

The political parties compromised on several key tenets of the bill in order to get it rubber stamped before the general election. Many of the more controversial measures - including a 10% hike on cider and a 50p broadband tax - were dropped to ensure the bill went through.

Much of the current criticism focuses on the little debate the bill received before it entered UK law. With no opportunity to review the clauses or perceived technical defects of the bill the process has been seen as undemocratic by some commentators. Another widespread criticism is that MPs will be unable to press ministers for clarification and explanations regarding the more uncertain aspects of the bill.

The Finance Bill includes a significant proportion of detailed technical proposals that may alter the tax landscape in the future for both businesses and the public. Anti-avoidance schemes related to capital allowance buying form a large part of the bill, and deeper within the bill there are plans to allow HMRC to impose penalties on companies who calculate their annual bills incorrectly when submitting them.

The bill has been compared to the Digital Economy Bill, which has also been recently rushed through parliament before the general election. Both contain controversial measures which, according to consensus opinion, should have been subject to sufficient discussion and re-drafts to ensure they benefited all sections of society.

In combination with the relatively unstable economic climate, the passing of the Finance Bill may be worrying to companies who feel compliance regulations are already stringent enough without additional demands. Yet it is important all companies take steps to improve the accuracy of their financial reporting to ensure the updated compliance regulations are fully met.

Access business software provides full financial disclosure on all business operations - the advanced modular build allows different departments to exchange data in real-time, ensuring financial statistics are always based on the latest data and ready to be utilised in the decision making process. And because the software includes ICAEW-approved audit trails and the ability to take copious notes on every financial transaction, it helps ensure the accuracy of financial data submitted to the taxman, as auditors benefit from full access to the company's entire financial history.

For more information, please call Access on 0845 345 3300.

Article keywords: Finance Bill, business software, general election, Digital Economy Bill, ICAEW-approved audit trails

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