Corporation Tax Reform and the Business Turnover Tax
The author proposes to simplify the Corporate Tax Regime as it stands now because it is complicated, ineffective and fails to deliver results. All businesses, small and large, are said to cook their books with clever accounting tactics and the use of legal loopholes in order to evade paying tax. The net earnings from corporate taxation in a country like Britain appears to be substantially less than what it is expected to generate under the current system. Can we levy a straight forward tax on the turnover and make the corporate accountants and lawyers redundant? I don’t see any reason why we cannot adopt a turnover based tax. The BTT cannot be anything more than 5% of the net revenue and the eligible SMEs should be exempt from paying this tax.