 Government right to delay flawed statutory residence test
6 December 2011: PKF Accountants & business advisers welcomes the Government’s announcement today that its proposals for a statutory definition of tax residence have been delayed twelve months until April 2013.
Philip Fisher, Head of Employment Tax and Rewards at PKF, said: "While a definitive test for UK residence is long overdue and greater certainty about tax status is much needed, the fact that the Government has decided against rushing through flawed rules that were likely to cause significant problems is good news."
"In particular, it is hoped that the final version will be both fair and fully intelligible so that taxpayers can self assess their position with confidence. Sadly, the original proposals would not have achieved that goal."
“If nothing else, the delay will give individuals some warning and allow for a fairer transition to the new regime.”
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For further information, please contact: Andy Konieczko, 020 7065 0537, andrew.konieczko@uk.pkf.com
Notes to Editors:
1. PKF (UK) LLP is a leading firm of accountants and business advisers with more than 1,500 partners and staff operating in 23 offices in the UK mainland firm, incorporating a wholly-owned financial planning company and associated offshore practices. The firm specialises in advising growing and entrepreneurial/owner-managed businesses, AIM and fully listed companies, and also has extensive experience in the public and not-for-profit sectors. Principal services include assurance and advisory; taxation; consultancy; corporate recovery and insolvency; corporate finance and forensic. The firm has particular expertise in advising sectors such as hotels and leisure; mining and resource; public sector; real estate and construction; professional practices; not-for-profit; and medical. The firm’s web site is www.pkf.co.uk
2. PKF (UK) LLP also offers financial services through its FSA authorised company, PKF Financial Planning Limited. PKF (Isle of Man) LLC is a limited liability company registered in the Isle of Man. PKF (Guernsey) Limited is incorporated in Guernsey.
3. PKF (UK) LLP is a member firm of the PKF International Limited (PKFI) network of legally independent member firms. The PKFI member firms have around 2,200 partners and more than 21,000 staff in around 125 countries.
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