Chirac prepares to slash France's corporation tax
French president proposes massive corporation tax cut from 33% to 20%
French president
Jacques
Chirac has proposed slashing France’s corporation tax rate from 33%
to 20% in an effort to spur the country’s flagging economy.
If Chirac pushes ahead with the plan, there will major implications for the
UK, which could be perceived as Europe’s business tax laggard.
The Daily Telegraph
reports that Chirac plans to reduce corporation tax to 20% in five years.
‘We have to take action on corporation tax to save our businesses and help
create new ones,’ Chirac said in his New Year speech.
George
Osborne, the shadow chancellor, said when Labour came to power only
ten of the world’s richest states had lower corporation tax rates than the UK.
That number has since increased to 20 and could rise to 21 if France proceeds
with Chirac’s plans.
Further reading:
French finance minister admits taxpayers will be hit
French could have a one-year tax break
UK wins backing from France in carousel fraud battle
