IoD: 'Tax treaties must be amended'
The Institute of Directors says rather than introduce European Union-wide tax harmonisation, 'European treaties should be amended to respect the rights of member states to protect their tax bases'.
Derek Brownlee, taxation executive at the IoD, made this comment in a letter to the FT in which he re-affirmed the institute’s opposition to EU-wide tax harmonisation.
‘The IoD has been urging such a course of action for a long time,’ Brownlee said with reference to the amendment of treaties.
‘Many long-standing aspects of the UK corporate tax system are being challenged in the courts on EU law grounds.’
He went on to say that amending the treaties would ‘prevent a big burden in the form of additional regulation and leave UK policymakers free to concentrate on a subject of much more fundamental importance to UK business: is our tax system competitive, not merely within the EU, but internationally?’