Hostile tax laws could drive big companies overseas (The Times)
The existence of anti-avoidance legislation proves that tax legislation is over-complex and out of control.
BRITAIN’S "antagonistic" anti-tax avoidance laws could drive some of the biggest companies overseas, one of the leading tax lawyers said yesterday.
The Times has learnt that at least one FTSE 100 company is investigating domiciling itself outside the UK following an 18-month crackdown by Revenue & Customs on tax avoidance.
Other companies are so angry at the clampdown on previously accepted business practices that they are refusing to co-operate with Revenue’s attempts to understand corporate tax planning.
Guy Brannan, head of tax at Linklaters, the City law firm, said that the relocation plans of a number of companies were at a "pretty advanced stage".
The torrent of anti-avoidance legislation began in 2004, shortly after the Government introduced laws forcing companies to disclose how they minimised their tax bills. The disclosure regime is currently being extended, raising fears of even more stringent anti-avoidance rules.
The Times has learnt that at least one FTSE 100 company is investigating domiciling itself outside the UK following an 18-month crackdown by Revenue & Customs on tax avoidance.
Other companies are so angry at the clampdown on previously accepted business practices that they are refusing to co-operate with Revenue’s attempts to understand corporate tax planning.
Guy Brannan, head of tax at Linklaters, the City law firm, said that the relocation plans of a number of companies were at a "pretty advanced stage".
The torrent of anti-avoidance legislation began in 2004, shortly after the Government introduced laws forcing companies to disclose how they minimised their tax bills. The disclosure regime is currently being extended, raising fears of even more stringent anti-avoidance rules.
Comment