A Treasury proposal which aims to simplify corporate tax will only confuse matters for small business accountants, according to the Institute of Chartered Accountants of Scotland (ICAS).
Two suggestions, that small businesses might base their statutory accounts on tax rules and not generally accepted accounting principles and that they might be taxed by reference to cash flows rather than profits, have both been rejected by the group of accountants.
Unnecessary complications will arise from the proposals, says assistant director of tax at ICAS Donald Drysdale.
He said: "Businesses, especially small businesses, are facing commercial and financial uncertainties as they try to survive through an exceptionally harsh recession. This is not the time for government to be overturning existing rules for the sake of it."
The group rallied against certain tax changes after the pre-Budget report in November, saying they would cause complications in corporate accounting and would discourage employment.
Show me Treasury jobs
