UK HMRC Corporation Tax Time Bomb

[BlasterBates]

Hehe. I thought someone would spot that! But I did add "plain common sense" or, to use a high falutin phrase, "natural justice".

There would be a big outcry, and rightly so, if any Parliament tried to apply adverse changes in criminal law retrospectively. Even with kiddy fiddlers and sex pests the courts are careful to use sentencing guidelines that applied at the time of the offence(s).

Even doing so for civil law it is highly objectionable, because in a civilized and complex society people and companies need to know where they stand.

A tax is not a punishment, it's not a prison sentence or a fine, it is a rule which requires you to pay tax.It is not the same thing as legislating something is illegal and applying it retrospectively, which is unconstitutional. If the government decides to introduce an additional tax on companies based on what they earned in 1995, they may do so. They're not saying the company broke the law they're simply raising revenue. Of course they wouldn't do this because they would discourage investment, but if a company finds a loophole extending back to 1990 the government could respond with a new tax also extending back to 1990. This wouldn't discourage investment because companies would understand that they were trying it on.

[OwlHoot]

A tax is not a punishment, it's not a prison sentence or a fine, it is a rule which requires you to pay tax. It is not the same thing as legislating something is illegal and applying it retrospectively,

Paying tax, like obeying the law is an obligation. That's what it's about.

If the government decides to introduce an additional tax on companies based on what they earned in 1995, they may do so. They're not saying the company broke the law they're simply raising revenue. ...

I don't dispute that, but you're trying to make a false dichotomy based on the how the current law happens to be.

The unconstitutional aspect (in abstract terms rather than a specific law) is changing obligations retrospectively, which undermines rational choice and planning and trust in the Government.