Treasury defers tax on foreign profits

Treasury officials have revealed the proposed changes to the taxation of
foreign profits are unlikely to be enacted before Prime Minister Gordon Brown
calls a general election in 2010.

The delay comes after several companies, including United Business Media and
Shire, announced the move of their tax domicile offshore. Several other
multinationals, including GlaxoSmithKline and WPP, have also threatened to
relocate to more tax-friendly countries.

Chancellor Alistair Darling was expected to release a consultation paper
containing controversial proposals for the taxation of profits in multinational
companies by the end of July.

However, a person close to the
Treasury said it
was ‘obviously now not going to happen under the original timeframe’. ‘The
consultation period is certainly now going to be delayed,’ the person said.

Further reading:

Darling promises to leave offshore taxes on hold

Dublin’s gain is Darling’s loss

The Times story

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