First published in 2015, this report examines stability which, along with simplicity and certainty, is one of the cornerstones of a good tax system: but why is it important? In the face of changing economic and social demands, and not least the impact of the COVID19 pandemic, how best can change be managed?
Managing change in the tax system is a concern for taxpayers and governments alike. All othe things being equal, a stable and consistent system, imposing predictable tax bills and administrative burdens from one year to the next, will encourage economic growth. But starting with imperfect systems against the backdrop of an evolving world, some change is inevitable.
This report analyses how best to approach that change, and the steps policymakers should take to best address the wider needs of society through the tax system.
This paper was first published in 2015. It has been re-released to support the 2020 report Foundations for a sound tax system: simplicity, certainty and stability. References to web resources have been checked and updated where necessary, but the body text has not been edited.