Tuesday 14 August 2007

Increased taxation means more work for accountants?

Does an increase in UK business taxes means more work for accountants? I suppose that
they hope so. The Institute of Directors is a bit concerned about the introduction of supplementary business rates and IoD secretary general Miles Templeman is worried that a small increase in normal business rates could lead to the closure of viable enterprises. This
follows the recent Lyons report on the issue. There is the feeling in political circles that
the burden on council tax payers has reached its maximum and now in is the time to
tax business enterprises.
Natalie Evans of the British Chambers of Commerce said business could be hit by an extra
tax of £1.5bn.
Changing the subject it is sad that ICI is being acquired by the Dutch group Akzo Nobel. It
reminds me of the title "Selling England by the Pound". The UK is up for sale and BAA has shown some of the pitfalls of foreign owners with 2006 investment being reduced so as
to pay off the borrowings. And letting foreign state owned enterprises buy up British
companies is insane. I know we let French state controlled group EDP buy up London Electricity
but letting Middle East and Chinese state agencies do the same is fraught with problems.
P&O provided significant support during the Falklands War but would it do the same
in future with its Dubai owners. I suppose the British government could nationalise its
way out of trouble.

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