Calculating IR35 liability 'a problem not unique to the UK'
Posted on 29 July 2010
Published by Lisa Meadows
The UK is not the only country which has attempted to tackle the problem of employees disguising themselves as contractors to avoid tax, it has been claimed.
Contract Calculator chief executive Dave Chaplin, a former IT freelancer in the City of London, told the website that similar problems have been experienced by governments around the world.
He noted that the tax perks offered to contractors, in return for the reduced levels of income security inherent with their role, prove attractive to many people, and persuade some to try and take advantage of the law.
In the UK, the Labour government created IR35 legislation to combat false self-employment, but after ten years, this controversial tax is now to be reviewed by the Office for Tax Simplification.
Mr Chaplin explained that nations such as Canada and Australia have also implemented laws to combat perceived tax evasion.
"And, as with IR35, the solutions are typically one-size-fits-all," he stated.
"They tend to be desperately unfair and typically fall foul of the law of unintended consequences."
Links:
Categories: IR35
Post a comment
