Britain is going to reject the EU’s plans to curb tax avoidance. No innovation, NO productivity without the pressure of competition…..in Malta it works out being compliant as well
Britain will reject plans announced in Brussels this week to combat industrial-scale tax avoidance by the world’s biggest multinationals, the Treasury minister responsible for tax policy has said.
David Gauke, financial secretary to the Treasury, told representatives from the European parliament that Britain would not adopt the measures to introduce certain common tax rules. “He was very clear that the UK is insisting on tax competition,”
Known as the common consolidated corporate tax base, or CCCTB, the policy would see countries adopt a common set of rules on where company profits arise – removing many of the national differences that multinationals have been able to exploit to lower their tax bill.
George Osborne has set great store by Britain’s tax competitiveness, slashing the headline corporate tax rate from 28% to 20%. But it is not just on the rate that Osborne has competed hard: new favourable tax regimes for multinationals with offshore financing subsidiaries as well as new tax breaks for patent-owning companies have also been central to aggressive tax competition policy.
These and other measures have seen a wave of companies shifting their European headquarters or research and development arms to the UK – much to the anger of other member states. The UK has seen an influx of multinationals – among them Aon, Fiat Industrial, and Starbucks’s European operations – looking to gain tax advantages through the optimal location of the often small number of headquarters staff.
Last month the US seed and agrochemicals group Monsanto announced that, should it succeed in taking over Swiss firm Syngenta, it planned to move its headquarters to the UK.
“Direct taxation is a matter for EU countries, and any direct taxation matters require unanimity across all EU countries. We’re fully involved in international discussions on tax issues and have consistently supported global measures, through the EU, G20 and OECD, which will strengthen international rules to prevent corporate tax avoidance.”