UK softens on common EU tax base

British opposition to the EU project for a common consolidated corporate tax
base (CCCTB) may be softening,
the
FT reported.

Lobbyists in Brussels believe the UK government may be more attracted by the
idea in a bid to address the issue of large corporates leaving the UK for tax
reasons.

The CCCTB would make it more difficult for companies to take advantage of
low-tax jurisdictions, it is thought.

Conor Foley, of Hume Brophy, a lobbying firm, said there was growing
speculation about the UK’s position.

Though the UK government rejects the idea publicly, it is apparently more
considered in private.

The Treasury said in response: ‘Like a number of other EU member states the
UK is deeply skeptical of the case for a common consolidated corporate tax base.
In an increasingly globalised world, countries, need the flexibility to respond
to shocks, and stimulate investment, employment and economic growth in different
ways. Adopting a single set of rules for calculating the tax base within the EU
would restrict flexibility and be counterproductive to achieving those goals.’

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