UK business leaders shun tax convergence

A study by PricewaterhouseCoopers (PWC) reveals only a quarter of chief
executive officers (CEOs) of British companies are in favour of governments
driving convergence – most are opposed to any effort to converge with global tax
and regulatory systems.

By contrast, CEOs in 49 countries outside the UK supported the idea of
greater convergence at 53%. The figure jumped to more than 70% in the emerging
economies of Brazil, India and Russia, as well as in Italy and Germany, reports.

Richard Collier, PwC UK head of tax, said he was not surprised that UK CEOs
were eager to maintain control of the country’s tax regime. ‘Clearly they are
wary of convergence of international tax systems, no doubt fearing this would
lead to more complexity, uncertainty and time being spent on dealing with red
tape,’ he said.

Another newly released report by the Confederation of British Industry has
found British businesses will pay another £4.2bn in taxes over the next three
years, despite a cut in the headline rate of corporation tax.

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