OECD: UK tax system underestimated

The competitiveness of Britain's tax system is underestimated by business, according to an OECD representative.

According to Jeffrey Owens, director of OECD Centre for Tax Policy and Administration, the business community is capitalizing on a window to lower taxes 'in the tail end of this government.'

According to a report on ft.com, Owens said the UK tax system compares 'pretty well' to that of competitors.

Highlighting Owen's comments, a report released yesterday showed the UK's total tax burden at 36.6% of gross domestic product was slightly higher than the OECD average but lower than the eurozone 15 member states.

Owens said that UK corporate tax rates looked competitive relative to other large economies.

Taxes on corporate income as a share of UK GDP rose to 4% in 2006, and increase of 3.6% in 2000 and 2.2% in 1975.

The report also revealed Denmark and Sweden as the highest-tax generators of all OECD countries. Mexico and Turkey remain the lowest-taxing countries.