The research revealed that the UK’s headline 30% tax rate is far from the actual rate, and that it is inching up surreptitiously each year when viewed as an effective tax rate against a company’s accounting profits.
‘This analysis is clear proof that the headline rate of corporate tax is not the real story since few companies pay exactly that headline rate on their profits,’ said Derek Jenkins, corporate tax partner at PwC.
The Big Four firm has called for a review into how corporate tax is applied in the UK. ‘While it seems unlikely that we will see corporate tax rate cuts in the forthcoming Budget, there are undoubtedly pressures for change and this trend highlights the need for a significant review of how corporate tax will apply,’ said Jenkins.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states