1. General

1.1   Treasury Committee concerns over the implementation of Making Tax Digital

Chairman of the Treasury Committee, Andrew Tyrie MP, has written to the Chancellor for the second time over the implementation of Making Tax Digital (MTD), highlighting the additional burdens on business.

Andrew Tyrie's letter expresses the Committee's 'extreme concern' over evidence it heard from accountancy representatives and the Federation of Small Businesses (FSB). The FSB estimates that implementation of MTD will cost small businesses each an average of £2,770 a year. He calls for a fully costed impact assessment and points out that businesses will have to pick up the bill for HMRC's 'much needed investment in its IT'. He stresses that MTD should not be rushed and that its introduction should be piloted.

He also mentions that his letter of 15 September, reported in Update of 19 September, remains unanswered.

www.parliament.uk/documents/commons-committees/treasury/Correspondence/Treasury-Chair-to- Chancellor-Making-Tax-Digital-27-10-16.pdf

2. Business tax

2.1   OECD BEPS mutual agreement procedures (MAPs)

The OECD has released papers setting out how the MAP peer review and monitoring process proposed under BEPS Action 14 will be taken forward.

Action 14 is about dispute resolution. It seeks to eliminate taxation that is not in accordance with treaty provisions and to help resolve any tax-treaty related disputes in a timely and efficient manner through the MAP. The documents released include terms of reference and an assessment methodology for the further work.

The assessment methodology will involve two stages:

  • review of a Member's implementation of the minimum standard, based on its legal framework for MAP, and the application of this framework in practice; and
  • review of the measures taken by the Member to address any shortcomings identified in its stage one peer review.

www.oecd.org/tax/beps/g20-oecd-beps-project-advances-tax-certainty-agenda-with-the-launch-of- global-review-of-map-programmes.htm

www.oecd.org/tax/beps/beps-action-14-on-more-effective-dispute-resolution-peer-review- documents.pdf

Download >> Weekly Tax Update - 31 October 2016

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