Companies in this country have begun to dribble away to other jurisdictions, especially to Ireland. The explanation usually given is that corporation taxes are lower there.
This is true, - our tax rates are not competitive, and we stand to lose more, although some by nature of their local involvement may be reluctant. or may be too small to consider it.
Smaller companies probably suffer from a further problem which is less difficult for larger companies , which probably have their own "in house" legal section. I refer, of course, to what is commonly known as "re-tape" - regulation imposed by force of legal "red" ribbon.
A week ago it was revealed that when Tolley's Tax Handbook for 2008 was published, company tax law has doubled in the 10 years since Nulabour came to power. This year it has 10,134 pages, in four volumes compared to the 4,998 pages in two volumes in 1997. It was kept from 10,900 pages in five volumes only because the publisher changed the page layout and crammed more words on each page.
This is the bible which not only grows with new laws but also by many ammendments to existing and previous editions. Someone will have the unenviable task of reading everything and considering the implications of new laws and amendments. I am sure that some sort of summary of changes will have been made, but everything has also to be looked at in context.
It is not difficult to see why especially smaller firms find this whole business of getting informed and complying with new and changed regulations very expensive.
The book is about the tax law under which firms must operate. There are other areas - Health and Safety, for instance, with separate "libraries" demanding compliance. Add all this regulation up and there is a very strong disincentive for incorporation, despite its other attractions, to enable smaller enterprises to expand, and a strong incentive to re-locate elsewhere.
Whether the intention is to increase their tax-take or to micro-control, the effect is to drive firms elsewhere and make it more difficult for small firms to grow.
What a Government!
This is true, - our tax rates are not competitive, and we stand to lose more, although some by nature of their local involvement may be reluctant. or may be too small to consider it.
Smaller companies probably suffer from a further problem which is less difficult for larger companies , which probably have their own "in house" legal section. I refer, of course, to what is commonly known as "re-tape" - regulation imposed by force of legal "red" ribbon.
A week ago it was revealed that when Tolley's Tax Handbook for 2008 was published, company tax law has doubled in the 10 years since Nulabour came to power. This year it has 10,134 pages, in four volumes compared to the 4,998 pages in two volumes in 1997. It was kept from 10,900 pages in five volumes only because the publisher changed the page layout and crammed more words on each page.
This is the bible which not only grows with new laws but also by many ammendments to existing and previous editions. Someone will have the unenviable task of reading everything and considering the implications of new laws and amendments. I am sure that some sort of summary of changes will have been made, but everything has also to be looked at in context.
It is not difficult to see why especially smaller firms find this whole business of getting informed and complying with new and changed regulations very expensive.
The book is about the tax law under which firms must operate. There are other areas - Health and Safety, for instance, with separate "libraries" demanding compliance. Add all this regulation up and there is a very strong disincentive for incorporation, despite its other attractions, to enable smaller enterprises to expand, and a strong incentive to re-locate elsewhere.
Whether the intention is to increase their tax-take or to micro-control, the effect is to drive firms elsewhere and make it more difficult for small firms to grow.
What a Government!
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