The Office of Tax Simplification (“OTS”) has published some ideas on how to make CT returns more straightforward.

Simplifying the corporation tax computation

The OTS has published a report on simplification of the corporation tax return. The Northern Ireland Tax Committee met with the OTS in June 2016 and this was one of the agenda items discussed at that meeting.

The report makes recommendations on how to simplify and modernise from the perspective of both smaller companies and larger companies.

The conclusion the OTS has been drawn is that for all but the very largest companies, and particularly for smaller ones, the simplest solution is surely that tax should follow the accounts, withot adjustments being required.

An evaluation of OTS recommendations

The OTS has recently carried out a piece of work evaluating the progress on implementing recommendations made in some of its initial projects. This work updates that previously carried out in 2015 and gives the current and future position of recommendations that remain outstanding.

The OTS sees the review as valuable in being able to draw out some lessons for the future, which will be incorporated into new and ongoing OTS work.

2016–17 annual report

The OTS recently published and laid in Parliament its first annual report, for the period from when it was put on a statutory footing late last year in Finance Act 2016 until 31 March 2017.

The report also reflects on the period since the OTS was set up on an informal basis in July 2010 and was accompanied by a press release.

Complexity in the tax system

The OTS has published a paper updating aspects of their work on complexity in the tax system by revisiting the papers published on the subject since the OTS was formed. Some have been updated; some remain valid as they stand.

The OTS aims to continue to carry out work in the general area of complexity and will periodically issue further papers and updates. As part of this, the OTS would welcome comments, including ideas for further aspects it should study.

The ‘Gig’ economy

The OTS has published an updated focus paper on tax and the “Gig economy”. The focus paper cites a definition of gig economy as “A way of working that is based on people having temporary jobs or doing separate pieces of work, each paid separately, rather than working for an employer”. The paper is an update to the focus paper published last December about the gig economy. As always the OTS continues to welcome your comments.