UK loses competitive tax rate
The UK is losing its appeal as a centre for low corporation tax rates, according to a survey by Big Four firm KPMG.
The competition between governments to attract businesses has driven down tax rates in a huge number of countries, and intensified the pressure to increase the tax rates on individuals.
The Average level of corporation tax in the worlds 30 richest countries fell from 37.5% in 1996 to 30.8% in 2003.
John Battersby, head of strategic tax policy at KPMG, told the Financial Times that the UK’s corporate tax rate of 30% is now only a ‘whisker from the OECD average’.
And the pressure on UK-based companies will be increased with Gordon Brown’s aggressive anti-tax avoidance measures. ‘Mr Brown’s efforts to extract more from companies may not be sustainable,’ warned Battersby.