Tax avoidance schemes bringing industry into disrepute, says giant group
"We’re naturally concerned that these allegations tarnish all companies with the same brush, when the majority - including giant group - are operating in a completely compliant way. We welcome HMRC’s intentions to & lsquo;pursue users and promoters of the scheme’ and to ensure that only organisations that are complying with regulations are allowed to operate in the sector.
“One method of preventing further incidents happening in the long term would be to simplify tax legislation. There are currently well over 1,100 tax relief schemes and removing many of these would prevent firms from being able to operate above the law.
Thankfully, the Office of Tax Simplification has such a remit and a number of initiatives that aim to simplify this area come into force in April 2016. We’d encourage companies to engage with accredited members of trade associations, such as the FCSA, which ensure their members are reviewed against a publically available code that ensures standards are being adhered to. We hope all bad practice is stamped out quickly as incidents like this can really damage the reputation of the temporary recruitment service provider industry.”