Border business sinking in quicksand of tax dodger legislation: Durkan
Speaking during a debate at Westminster Mr Durkan said the legislation was causing major difficulties for family businesses working and living on a cross border basis in Londonderry and across Northern Ireland and that action was urgently needed to cut red tape.
The SDLP MP specifically attacked IR35 tax legislation introduced in 2000 to counter tax avoidance in the provision of personal services.
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Hide AdSome firms had previously avoided tax and National Insurance Contributions (NICs) by using intermediaries, such as personal service companies, in circumstances where an individual worker would otherwise be regarded as an employee of a client and thus taxable.
But Mr Durkan said the legislation was "a quicksand of complexity" and was proving a nightmare for family businesses in Londonderry and beyond who were being caught in an "utter matrix of tax complications."
Mr Durkan addressed his comments to the Exchequer Secretary to the Treasury, David Gauke, who said he hoped the new OTS would bear the problem in mind.
The local MP asked: "For how long will we have to watch this space to see an end to the quicksand of complexity that is IR35? Will the experts appointed to assist the OTS include people who understand the difficulties caused for families and firms who work and live on a cross-border basis in Northern Ireland?"
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Hide AdHe added: "Those people are caught in an utter matrix of tax complications."
Mr Gauke replied: "The hon. Gentleman makes a valuable point, and I hope that the OTS will bear it in mind. I am grateful to him for his comments."