OECD: UK tax system underestimated
The UK's tax system is good, despite the business community believing otherwise, influential body says
The competitiveness of Britain’s tax system is underestimated by business,
according to an OECD representative.
According to Jeffrey Owens, director of OECD Centre for Tax Policy and
Administration, the business community is capitalizing on a window to lower
taxes ‘in the tail end of this government.’
According to a report on
ft.com,
Owens said the UK tax system compares ‘pretty well’ to that of competitors.
Highlighting Owen’s comments, a report released yesterday showed the UK’s
total tax burden at 36.6% of gross domestic product was slightly higher than the
OECD average but lower than the eurozone 15 member states.
Owens said that UK corporate tax rates looked competitive relative to other
large economies.
Taxes on corporate income as a share of UK GDP rose to 4% in 2006, and
increase of 3.6% in 2000 and 2.2% in 1975.
The
report
also revealed Denmark and Sweden as the highest-tax generators of all OECD
countries. Mexico and Turkey remain the lowest-taxing countries.