companies’ remuneration reports include clear information about the link between pay and performance that is easy to find. The proposed disclosure requirements set out in this consultation document replace rather than add to the current requirements.
The Government proposes that, in order to ensure greater transparency and facilitate the new shareholder voting regime, this report comprises two parts:
A policy report setting out a forward looking policy on remuneration, including exit payments, and disclosure of material factors taken into account when setting pay policy. This part of the report will be subject to a binding vote and it will only be legally required when there is a shareholder vote (at a minimum this will happen every three years). A report on how the policy was implemented in the past financial year. This part of the report will set out how the policy has been implemented in the reporting year, including actual payments made to directors set out as a single figure, exit payments made and disclosure of the link between company performance and pay. It will be required on an annual basis and will be subject to an advisory vote.
The Policy team will not be responding to this consultation but if there are any members involved in Directors’ Remuneration Reports, the consultation will be running until 26 September 2012.
Single Income Tax – 2020 Tax Commission
THE SINGLE INCOME TAX REPORT FROM THE 2020 TAX COMMISSION
12 June 2012
The 2020 Tax Commission proposes a simple Single Income Tax that taxes streams of income only once.
The report states, “To create the conditions for stronger economic growth and more jobs, while treating taxpayers fairly, the Government must reform taxes to make them lower, simpler and more transparent.”
To achieve this, the 2020 Tax Commission recommends the Single Income Tax, which can be introduced in six steps:
1. Taxes should be cut to 33 per cent of national income 2. Marginal tax rates should not exceed 30 per cent, and the personal allowance should rise to £10,000 3. Taxes on capital and labour income disguised as business taxes should be abolished, and replaced with a tax on distributed income 4. Transaction, wealth and inheritance taxes should be abolished 5. Other consumption taxes need to stay for now, but transport taxes should be cut 6. Local authorities should raise half of their spending power from local taxes The report advocates a radical new system that taxes all income from labour and capital only once at a flat rate of 30 per cent, above a generous personal allowance for individuals and with no loopholes. National Insurance and Income Tax are merged into this new system; Corporation Tax is repealed and replaced by an unavoidable tax on distributed income from capital, be it equity, debt or property. Several other taxes – including Stamp Duty and Inheritance Tax – are also repealed.
The report says that while consultation and proper deliberation is necessary, it is important that the process is not too slow. They acknowledge that the OTS (Office for Tax
CIPP Policy News Journal
12/04/2013, Page 349 of 362
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