Special Report: TAXATION: Revenue Causes Confusion for Family Firms
THOUSANDS of tax payers are facing uncertainty on how they should complete their tax returns,following the Inland Revenue's latest controversial statement on the taxation of husband and wife teams within family companies.
This statement has failed to clarify the confusion created by previous announcements.
Tenon, the nationwide accountants and business advisers who specialise in helping small and medium-sizedbusinesses,is calling for an urgent rethink and change in approach.
This would enable the majority of small businesses,acting within the law in efficiently planning their tax affairs, to concentrate on running their core business, whilst tackling the occasional cases of avoidance. Andrew Hubbard, Director of Taxation at Tenon,commented: ``Many family companies could now face ruinous tax bills as a result of the Revenue's stance. What these companies have done is completely legal and they have acted in good faith in accordance with generally understood tax law and practice. …