Following publication of The Tax Gap , I spoke this morning with author Richard Murphy. That conversation can be be accessed as a podcast here. Key points that came out are: * The way tax is managed and reported is creating risk because companies seem to be using a combination of favourable tax regimes and UK rules on interest as a component of managing dividend policy. Financial analysts are starting to look at taxation. * There is a need for a rethink around tax accounting in reported accounts. At present, it is all to easy to obfuscate what is really going on. * IFRS 17 needs work. Current interpretations are leading to nonsensical results - especially as regards the handling of permanent timing differences and the disclosure of known timing differences. * Companies are resisting disclosure on tax risk in reported accounts. * The oft-heard claim that the UK tax burden is too high (and stifles investment) is not reflected in large company accounts where the general rate of CT is falling. * Will government push back on the charge the UK is less than generous in tax relief?

[ Sun, 15 Jan 2006 21:35:00 GMT ]

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