Country-by-country reporting “daft”, House of Lords told
Country-by-country reporting risks the UK's tax sovereignty, the House of Lords Economic Affairs Committee hears
Country-by-country reporting risks the UK's tax sovereignty, the House of Lords Economic Affairs Committee hears
THE INTRODUCTION of a formulary apportionment tax system is a “completely daft idea”, the House of Lords Economic Affairs Committee has heard.
Also known as country-by-country reporting, the system sees profits made by multinational corporations declared in each jurisdiction they operate in and taxed accordingly, with the aim of preventing profit shifting and tax base erosion.
However, such a system would see the UK relinquish tax sovereignty to the EU or another international body – a situation Deloitte’s head of tax policy Bill Dodwell told the committee would be “completely daft”.
The US operates a similar system between its states, which sees employment driven from one state to another for tax efficiency purposes, the lords heard. Indeed, with as many as 20 different tax methodologies in place, the US does not promote the system to the OECD, the panel comprising Dodwell, Ernst & Young’s Chris Sanger, PwC’s Richard Collier and Mercer & Hole’s Adam Broke said.
That evidence, though, was disputed by pepresentatives of non-government organisations also in attendance.
“One of the things in the full version of country-by-country reporting would be to pull out the nature of intra-group transactions and disclose those separately by country so we could see just what multinationals are doing to shift profits,” Tax Research UK founder Richard Murphy said.
More about:
The numbers you crunch tell a story. Your expertis...
11yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleAccountancy Age spoke with Deloitte tax innovation experts Andy Gold and Chuck Kosal on the topic of Deloitte's tax plans for 2020, innovative tax sol...
View articleWith proposals for an Amazon tax on the table, how can the UK tax system catch up with the implications of the Fourth Industrial Revolution? Read More...
View articleGlobal corporations are under increasing scrutiny over how much corporation tax they pay. So who are the latest big names hitting the headlines over t...
View articleThe EU is deeply divided over how to increase the tax take from tech giants such as Google, Apple and Amazon, who have recently come under fire for be...
View articleTo avoid falling foul of HMRC's tax crackdown, small businesses now have to be much more vigilant when it comes to tax matters, and it's an ideal oppo...
View articleLaw firm warns that HMRC focus on entrepreneur’s relief could prompt increase in avoidance scheme usage Read More...
View articleDiverted profits tax revenue collected by HMRC in 2016-17 totalled £281m, leaping from £31m collected in the previous year, according to data released...
View articleBillions of pounds of infrastructure investment planned; but tax tinkering still looms following Philip Hammond's first Autumn Statement Read More...
View article