Government are absurd retards over Income Shifting, say Contractors Group

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Government are absurd retards over Income Shifting, say Contractors Group

The Professional Contractors Group (PCG), which represents the UK's freelancers, has today submitted its formal response to the Government's plans, for a Family Business Tax on "income shifting."

The Group has dismissed and condemned the proposals as "conceptually retarded", saying the Government's plans belie a fundamentally flawed and misunderstood understanding of basic business concepts such as profit, income and risk.

Absurd

PCG's managing director John Brazier, has commented:

"They are trying to claim that any profits from a business must be taxed as the personal income of the individual within that business whose labour generated them: this is plainly absurd, and seems to be trying to say that hundreds of thousands of businesses are not businesses at all, but just individuals who should be treated as earning salaries."

PCG has also come down strongly on the proposals, terming it unrealistic, as it places a disproportionate burden on family businesses, bogging it down under bureaucratic red tape to make sure they have complied with the legislation - irrespective of whether or not they actually owe any extra tax under it.

Make the government see sense

Mr Brazier said he hopes the Government facing the onslaught of criticism from business bodies, tax experts and thousands of people who've signed the e-petition, MPs from all parties who've signed the Early Day Motion against the unfair proposals, will be forced to reconsider its plans.

PCG has also written to John Hutton, Secretary of State for Business, Enterprise and Regulatory Reform, imploring him to get the Better Regulation Executive to investigate the nature and conduct of the consultation.

No Evidence

Commenting on the want of sufficient evidence/basis of the legislation, Mr Brazier said "It has been clear from the start that the Government decided to legislate on the basis of no evidence whatsoever."

"Throughout the consultation, they have refused to discuss the principle of the legislation, even though their draft Impact Assessment admitted that they could not accurately quantify the problem they wanted to address - or even confirm that there was a problem at all,” he explained.

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