CIOT President Vincent Oratore said: "This is a good start from the OTS. They have produced a solid piece of work. If the Chancellor takes up these recommendations, this will be a first step on the road to a simpler tax system.
"The OTS deserves credit for tackling difficult issues in the report. Nearly all tax reliefs benefit somebody and they will usually not want to see them disappear. However, as the report points out, the cost of them is borne by all other taxpayers and simpler, more effective tax laws are in the overall public interest.
"Simpler tax laws would mean an easing of the administrative burden on business, individual taxpayers - especially the unrepresented - and HMRC. They would make the tax system more transparent and more comprehensible, and therefore more likely to command public and business confidence. They would also mean fewer loopholes and distortions, leading to fewer unintended consequences and fewer opportunities for tax avoidance.
"While the OTS is carrying out excellent work, there is also a pressing need for improvements in the parliamentary process for scrutinising new and existing tax laws. The CIOT will be continuing to press for improvements in this area, including the setting up of a Joint Committee on Taxation."
