The calls follow Shire Pharmaceutical’s decision last week to change tax
residency from the UK to Ireland because of uncertainty about the possible new
Senior tax figures believe Treasury officials have got their priorities wrong
by forgetting that corporation tax raises 10% of the UK’s total tax income, a
better yield than any tax gained from overseas entities.
Bill Dodwell, head of tax policy at Deloitte, said: ‘We would like to see the
focus on protecting the UK tax base, rather than on charging UK tax on overseas
income. The UK should offer a favourable tax route for this mobile income to
encourage companies to be based here.’
John Cullinane, former president of the Chartered Institute of Taxation,
agrees: ‘There will be lots of compliance costs to delve down into what foreign
companies are earning. There’s already anti-avoidance legislation to stop
companies shoving cash to foreign subsidiaries and not paying tax.
‘They should look at tax collection and really need to protect this, rather
than taxing intellectual property and other passive income around the world.’
Other companies which have moved their UK HQ recently include Shell,
Experian, Invesco and insurers Hiscox and Omega.
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