Tax reform must focus on competitiveness
THE CBI has welcomed the Government’s commitment to making the UK the most competitive corporate tax system in the G20 by a phased reduction in the corporate tax (CT) rate to 24%.
The UK business organisation also yesterday said it supports the commitment to deliver balanced and competitive Controlled Foreign Company (CFC) rules, but said that it had concerns that proposals for Controlled Foreign Companies (CFCs) could be overly complex and constrained by cumbersome anti-avoidance provisions.
John Cridland, CBI director-general, said: “The main purpose of tax reform has to be improved competitiveness, making the UK a more attractive location for inward and outbound investors.
“The Government also needs to address international perceptions that HMRC is very aggressive in its treatment of Controlled Foreign Companies. We recognise the need to maintain the UK tax base, but anti-avoidance measures must be proportionate to the perceived risk, and targeted at specific abuse. A heavy-handed scatter-gun approach could deter outbound investment.
In its submission to the Government’s consultation document _Corporate Tax Reform: delivering a more competitive syste_m, the CBI said that it welcomed a phased reduction in the main corporate tax rate.
However, after first consolidating public finances which is the priority, the organisation said the rate needs to go lower than 24% to make the UK truly competitive relative to other G20 countries.
This was posted in Bdaily's Members' News section by Ruth Mitchell .
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