Mark Hoban says CFC reform approaching

Long-running efforts to reform the way overseas subsidiaries of UK companies
are taxed are gaining momentum.

The controlled foreign companies regime has caused major headaches for UK
multinationals including Vodafone and Cadbury but Treasury chiefs have said the
government is willing to compromise.

Earlier this week, Mark Hoban, financial secretary to theTreasury, confirmed
in a speech government’s wish to move the country towards a more territorial
system of corporate taxation.

Hoban said that the coalition government was determined to reform the CFC
regime and the taxation of foreign branch profits, so that it “properly reflects
the modern, global, business environment.”

“The UK needs a more territorial approach to taxation,” Hoban said in a
speech at City Week, an event to promote the City of London and the UK financial
services industry. “We want to make CFC rules easier to operate, to enhance the
attractiveness of the UK economy.”

Further reading:

foreign companies rules must keep UK commercial

settles marathon case with taxman for £1.25bn

06: Brown delivers Cadbury ‘insult’ on CFC s

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