The online journal Conservative Home has published an excellent article by our chairman, Alistair Renshaw:
Retrospective taxation that forces people into bankruptcy is morally repugnant
In the article, Alistair states:
"The most important feature of any tax system is legal certainty. It is generally accepted that retrospective tax changes – where people incur demands for additional liabilities and are fined for arranging their affairs in a manner that was entirely legal at the time – should only be used in the most exceptional circumstances, and even then, only when clear warning has been given in advance under the Rees rules. Retrospection damages confidence in the rule of law, which is an essential component of a competitive economy in a globalised world, and by undermining the principles of stability and uncertainty, reduces the attractiveness of the UK as a place to invest and do business."
Recognising the hypocrisy regarding the recent spat between Osborne and the Indian government, he then goes on to say:
"The detrimental impact of retrospective changes to tax legislation has been recognised by none other than Chancellor George Osborne, who recently warned his Indian counterpart Pranab Mukherjee that proposals to impose additional capital gains tax liabilities going back fifty years on anyone carrying out business in that country – a measure that would land British companies such as Vodafone with an additional £1.4bn tax bill – would harm the investment climate in India."
The full text of the article can be found at:
http://conservativehome.blogs.com/platform/2012/05/alistair-renshaw.html
