Margaret Hodge calls for overhaul of UK tax laws

Former chair of the UK public accounts committee Margaret Hodge, who has repeatedly attacked the use of offshore tax avoidance schemes, has called for an overhaul of the British tax system.

Speaking during an annual Professional Fee Protection (PFP) tax investigations conference, Hodge said the current tax regime in the UK is “far too complex”, and called for “better, clearer and fewer laws”.

In particular, she argued that tax reliefs are over-used in the UK, saying they allow for abuse of the tax system. Hodge went on to suggest that grants be used to provide support instead.

Uncomfortable

She also raised concerns over retrospective tax legislation, claiming she is “uncomfortable” with it.

Hodge argued that financial advisers have a moral obligation to ensure they “take into account parliament’s intention” when advising clients.

Closing loopholes

She called for a greater common sense approach, and said the same level of integrity should apply when technical advice is given to HM Revenue & Customs and other policymakers, in order to ensure “all loopholes are closed”.

Hodge is now the head of new cross-party group on responsible tax addresses.

In December last year, she criticised PricewaterhouseCoopers, claiming the international accounting firm sold tax avoidance “on an industrial scale”.