Darling promises to leave offshore taxes on hold

In a highly conciliatory speech to the
CBI
last night, chancellor Alistair Darling promised to leave taxes on international
businesses on hold in a an effort to stem the exodus of multinational companies
offshore.

Alistair Darling admitted Britain was at risk of losing its attractiveness as
a base for companies to establish their headquarters and made a pledge not to
slap extra taxes on international businesses, The Daily Telegraph
reports.

A newly released Treasury discussion paper has sparked fears that companies,
particularly those specialising in intellectual property, will be forced to pay
higher taxes on some overseas earnings.

At the dinner, Martin Broughton, CBI president, said such proposals were
dulling Britain’s attractiveness. ‘What business wants from the system of
corporate taxation in Britain is clarity, certainty and competitiveness,’ he
said. ‘What we are getting is cost, complexity and capriciousness.

Further reading:

CBI president to roast Darling at annual dinner

Darling to address CBI as tax panel takes shape

Read
The Daily Telegraph story