Institutes push Treasury on CFC rules

Two institutes have joined forces in calling for the government to allow businesses to bring offshore gains into the UK tax free and then concentrate on anti-avoidance issues.

In a letter to the Treasury's financial secretary Jane Kennedy, the CIoT and the ICAEW put more pressure on the Treasury to grant the long- awaited dividend exemption before looking into the potential knock-on effects, the FT reported.

Tax policymakers have raised concerns that the dividend exemption would see companies pass 'passive' income from assets such as intellectual property through controlled foreign companies in low tax jurisdictions.

However, advisers have said that the repatriation of funds onshore will actually benefit the UK's corporate tax take.

Further reading:

Call for taxman to drop revenue neutral 'straitjacket'