The Office of Tax Simplification (OTS) has set out the scope for the upcoming review of its approach to and interpretation of ‘tax simplification’. At the same time, it has clarified its aims as an organisation and how it assesses its own progress and success.
The work is to be carried out as a formal review to inform the government about how simplification efforts should be prioritised over the next five years.
The scope of the review will be to:
- Set out the OTS’s interpretation of and approach to ‘tax simplification’.
- Explore the ways in which tax complexity is experienced and how it impacts individuals, businesses, agents, HMRC and the economy.
- Assess the benefits of simplification, and how it could practically be achieved through changes in policy, legislation, guidance, digital systems or administration.
- Consider international tax simplification methods as well as the OTS’s own experience and insight from HM Treasury and HMRC.
- Consider how the OTS operates in the context of political, societal and economic factors including planned changes around policy, technical and technological matters.
- Consider potential implications for the Exchequer, the tax gap and compliance, taking account of the principles for a good tax system such as efficiency and taxpayer trust.
The OTS is to consult with a variety of stakeholders and will publish its report in Spring 2022.