Scrap corporate taxes and revolutionise system

Hooray!! But why stop there?

Brilliantly simple but why not apply this principle to all distributions and do away with the other massively corruptible distinction between employment/ self employment/ unearned income. And, for that matter, gambling winnings, prize money, royalties ....

Posted by Bob Eastoe, 14 Nov 2012

Get Rid of Personal Income Tax as well

Lets move towards spending taxes only for individuals and rid ourselves of the black economy overnight. A new range of VAT Rates could be introduced with the highest rates of up to 100% on luxury items. People would be motivated to work harder and could sit on their cash if they wished but once they spend it, they pay tax at various rates.

Posted by Peter Power-Hynes , 15 Nov 2012

Already tried

An old idea, don't you remember NCDs???

The NCDR was introduced in FA04/S28 but was abolished by FA06/S26(2). The legislation was in section ICTA88/S13AB and ICTA88/SCHA2. It applied only for the period 1 April 2004 to 31 March 2006. Throughout that period the rate was set at 19%.

The NCDR was a minimum rate of CT, which applied where a company made distributions to persons who are not companies. The NCDR basically removed the benefit of the lowest rates of CT for at least some of the profits for the companies affected. It was therefore irrelevant where companies were liable to CT at the NCDR or above.

If detailed advice on the application of the NCDR is required contact CTIAA (Non-Corporate Distribution Rate), who will be able to provide copies of the original guidance as necessary

Posted by tom mcmanners BSc ACA ACMI, 15 Nov 2012

wouldn't work

All this would achieve is a new focus on gearing strategies to avoid the levy. Bottom line is, our politicians need to be taken to be taken to task very publicly every time they spout their asinine thoughts. Maybe then the likes of Margaret Hodge will stop toeing a populist agenda at every opportunity.

Posted by peter rogol, 15 Nov 2012