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Conservative MPs say cut corporate tax to 10 per cent

The Free Enterprise Group of Conservative MPs believe that there should be a reduction in the corporate tax rate, with a substantial tax code rewrite to compel international companies to make the same contribution as UK firms.

In its report, the group published a request for a more straightforward tax system as it believes it would result in a great impact on overseas multinational companies which are known to shy away from paying tax in the UK.

If the advice is taken to fruition, accountants in Liverpool, Chester and other areas of the UK may soon have some more positive numbers to show to their clients.

Cutting corporate tax to 10 per cent would see an increase in competitiveness for the country with the funding coming from the abolishment of tax reliefs, as well as international avoidance structuring.

A number of multi-national firms, such as Amazon, Starbucks and Google, have received heavy criticism for their handling of tax affairs. The Public Accounts Committee described the company’s practices as being “immoral’. They criticised Google, in particular, citing the company as “evil”. The group also said:

“Avoidance of this kind is damaging to the overwhelming majority of UK-based businesses which cannot avoid taxes in the way foreign based enterprises are able to.”

It added that the UK has one of the world’s more complex tax code systems, and proposed that all changes suggested would ensure that all businesses are treated equally.

It also said that it would remain possible to avoid tax but that it will be much more difficult than it is at the moment.

Posted by Peter
May 29, 2013

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