Advisers underwhelmed by tax reform plans
Little difference between Osborne's plans to reform controlled foreign companies tax, plus intellectual property rules, and the previous government's proposals
MEASURES to overhaul multinational taxation and create reliefs for intellectual property fail to push reform beyond previous suggestions, say advisers.
Chancellor George Osborne’s proposals, which he described as the most significant tax reforms “in a generation”, include setting a partial corporation tax exemption for foreign groups’ finance companies and a 10% rate for profits made on new intellectual property.
Deloitte tax policy head Bill Dodwell said the proposals failed to move on ideas proposed by the Labour government, reported the FT.
“There is no more ambition than we had seen under the previous government,” said Dodwell.
E&Y’s Chris Sanger said corporates would have breathed a “sigh of relief” at the proposals, but warned that new rules for intellectual property only benefited patents rather than to royalties and brands.