Government backs down on mixer companies
The government has confirmed a partial climb-down over Budget plans to tighten the tax rules relating to the profits of multinational companies.
The government has confirmed a partial climb-down over Budget plans to tighten the tax rules relating to the profits of multinational companies.
Amendments allowing companies to continue the practice of pooling foreign earnings to minimise British tax liabilities were announced in an Inland Revenue statement this afternoon.
‘The government’s discussions with business have led it to conclude that there are circumstances in which a limited form of onshore pooling of foreign tax on dividends will be allowed, where this involves genuine business activity,’ the statement said.
But the government refused to back down from chancellor Gordon Brown’s proposed ban on the use of Controlled Foreign Companies to avoid tax.
The measures are intended to tackle tax avoidance, with a firm clampdown on abuse of offshore holding companies. It is also aimed at protecting the tax base, and underpin the government’s broader aims for the UK corporate tax system.
Whitehall officials maintain its twin objectives of tackling tax avoidance while ensuring the attractiveness and competitiveness of the UK for business will be met.
Treasury officials believe the tax revenue from the revised package of measures will be almost identical to that of the scheme announced in the chancellor’s Budget day speech.
16 JUNE 2000 – FINANCE BILL: DOUBLE TAXATION RELIEF AND CONTROLLED FOREIGN COMPANIES
The numbers you crunch tell a story. Your expertis...
24yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleHMRC sees the profit or loss made on buying and selling of exchange tokens as within the charge to Capital Gains Tax (CGT). Read More...
View articleThe recent IR35 case involving former Liverpool footballer and Sky Sports presenter, Phil Thompson, has drawn attention to the complexities and implic...
View articleFrom January 1, 2024, HMRC will implement new tax rules affecting individuals who sell items on platforms like Etsy, Depop, and Vinted. The new regula...
View articleHMRC reveal a small majority of people are soldiering a significant proportion of income and capital gains tax, following FOI request. Data has reigni...
View articleSteven Pinhey, technical officer at the Association of Taxation Technicians (ATT), considers how the rules on deductible expenses work in a social med...
View articleATT technical officer, David Wright, considers the implications of HMRC’s decision to remove employees with income between £100,000 and £150,000 from ...
View articleThis was the fourth largest borrowing year since records began in 1993 Read More...
View articleATT technical officer, David Wright, provides an overview of the welcome relaxation to CGT provisions for separating couples looking to transfer asset...
View article