Britain will reject plans announced in Brussels this week to combat tax avoidance by the world’s biggest MNEs says David Gauke, the Treasury minister responsible for tax policy.
The common consolidated corporate tax base, or CCCTB, would see countries adopt a common set of rules on where company profits arise, removing many of the national differences that MNEs have been able to exploit to minimise their tax exposure.
However it is understood that the Treasury might not object to other EU member states developing a CCCTB alone.
George Osborne has set great store by Britain’s tax competitiveness, slashing the headline corporate tax rate from 28% to 20% and introducing tax breaks for MNEs with offshore financing subsidiaries and patent-owning companies, which has led to a surge of companies shifting their European headquarters or research and development arms to the UK, with more planning to do so.
The Treasury commented “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.”
Source: The Guardian Newspaper