Tax audit concerns raised

News Article - Wednesday, September 26, 2007

filed under: Regulatory

The Association of Technology Staffing Companies has raised concern over new proposals from HM Revenue & Customs (HMRC).

HMRC is said to be considering a new audit standard to allow auditors to analyse whether composite companies are paying the correct level of tax, Accountancy Age reports.

The plans have received a mixed reaction from the Association of Technology Staffing Companies, which suggested that the move could have significant implications for recruitment firms, the news provider states.

According to the association the standard would not provide a legal guarantee and recruitment firms could potentially be required to pay tax for the staff they employ.

Ann Swain, chief executive of the organisation, said: "We are pleased HMRC is seriously considering our proposal for an audit standard, but without a legal guarantee recruiters will still have to factor in some risk when drawing up preferred supplier lists."

The association was established in 1999 to represent and promote the IT, telecommunications and engineering recruitment industry.

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