‘According to the efficiency hypothesis increasing competitive pressures in goods and services markets, combined with heightened exit threats by mobile firms and investors, have made spending cuts, tax cuts and ‘regressive’ changes in the tax mix inevitable’

Steffen Ganghof

Global Markets, National Tax Systems

And Domestic Politics

Rebalancing Efficiency and Equity

In Open States’ Income Taxation

Max-Planck Intitut fur Gesellschaftsforchung Dec 2001

For United Kingdom only answer the following questions?

The UK taxation system basically consists of (a) taxes on income and profits. (b) taxes
on capital, and (c) Duties on goods and services (HRMC duties). Discussing only income
tax and corporation tax answer the following questions:

1 Scope – who is taxed and under what circumstances?

2)What is taxable – e.g. types of income, and what are the tax rates?

3)What is the relevant tax period?

(30 marks)

What is the relative importance of direct and indirect taxes in United Kingdom?
What are the implications of this (use 2012-13 figures)?