The Government’s Corporation Tax Con

The Government’s Corporation Tax Con

George Osborne was full of tough talk on multinational tax avoidance in the Autumn Statement. “We want the most competitive corporate tax system of any major economy.” What Mr Osborne means is that he wants businesses to pay less in corporate taxes in the UK than in any other major economy. And he’s delivering on that.

He is trying to attract multinationals to Britain through tax breaks and lower headline rates. Tax competition puts downward pressure on corporate profit levies around the world by forcing other nations to match the lowest outliers. If the Chancellor were serious about global co-operation to curb tax avoidance, he would be pushing for global harmonisation on corporate tax rates & not trying to poach multinationals through lower rates. In effect, the UK is turning into a giant tax haven. [Independent 6th Jan. 2013]

Leave a Comment