The TUC has urged the Chancellor to close loopholes that allow businesses owned by non-domiciled residents to enjoy tax advantages over British companies.
These include escaping paying tax on export profits, share dividends and capitals gains tax when the business is sold, said The Guardian.
The TUC general secretary, Brendan Barber, said: 'If the UK is to survive in today's ultra-competitive global economy, it needs a tax system that rewards business innovation and productivity, not the ability to exploit tax loopholes.
'The chancellor should consider this when drawing up his budget and must ignore the self-interested whining of a small City elite masquerading as the national interest.'
In a letter to Alistair Darling reported in the Financial Times, Barber says: ‘Indeed, we would prefer you to go further and bring the UK into line with the rest of the advanced economies ... and expect those previously non-domiciled to pay tax in line with residency rules. We have calculated such a move would raise £4.3bn extra tax revenue, enough to help the government meet its target of halving child poverty by 2010.’
Further reading:
The Guardian story
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