You are hereHome ›
(The Guardian): The UK government should urgently analyse the impact of its new tax rules on developing countries, MPs on the House of Commons international development committee said on Thursday. Depending on the results of the analysis, the government should consider whether to drop its proposals from its finance bill, a committee report, Tax in Developing Countries, said. In the 2012 finance bill, the government proposed a relaxation of its anti-tax haven laws, or controlled foreign companies (CFC) rules. Designed to discourage UK-owned corporations from using tax havens, the rules have applied to British-owned companies operating either in the UK or overseas.
If a UK-owned company reports profits in a country with lower corporate taxes than the UK, the government is able to impose an extra tax charge on the company to "make up the difference".
Consequently, as things stand, profits moved from developing countries into tax havens still incur tax at UK rates.
Under the new rules, due to come into force in January, the UK will only impose this extra levy if the profits have been shifted from the UK. Profits moved from developing countries into tax havens will incur tax at the tax-haven rate, rather than the UK rate, so the incentive to shift profits will be significantly higher.
The comments posted do not necessarily reflect the views of CNS or any individual staff member. All comments are posted subject to approval by CNS. Read more
- I would be grateful if the 3 hours 5 min ago
- Cayman's International Standing 4 hours 7 min ago
- Our commitments should match 6 hours 27 min ago
- You would also notice in GT 1 day 1 hour ago
- But George Town is a dump. 1 day 12 hours ago
- Agree with you both 1 day 14 hours ago
- What a breath of fresh Air... 1 day 7 hours ago
- Oh? Where is this credit? I 2 days 44 min ago
- Kudos to PNA 2 days 3 hours ago
- And a day later they signed, 2 days 5 hours ago
- WTS: BB Q10...BB Z10 & Samsung Galaxy S4 BBM Chat: 23A0C377
- Work permit as Online Investor (Personal Investor)
- House for sale - Mt Pleasant WB
- \'09 Honda Fit 4sale
- New Blackberry Q10 Gold Plated and Gold Porsche Design (24 HRS BBM Chat:295941E1)
- Town - Extra Large Bedroom with XL Walk-in Closet
- ONE BEDROOM SHARING $325.00
- CINSA RElays
- Retirement plan
- Make Money Now - Easy as ever