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Is it right that a company with high sales but no profits pays no corporation tax? This was a question raised repeatedly in relation to the taxation of foreign multinationals with sales here in the UK. The question, debated in places such as the Public Accounts Committee, has led to proposed reforms by the OECD, that have been accepted by the G20 and many others, in corporate tax regimes around the world in relation to how profits are calculated and allocated to activity.  But the issue is more fundamental than the international rules – it is more about the role and purpose of corporation tax. 

As Donald Trump’s inauguration day (January 20) approaches, many UK businesses which have invested in the US are awaiting further details on his tax plans, particularly those affecting multi-national businesses. In my blog on 15 November, I discussed how his proposals might affect the cash piles of US based multi-nationals; but what do they mean for UK based groups with large US subsidiaries? 

Rt. Hon. Andrew Tyrie MP, Chairman of the Treasury Select Committee, has written to John Cullinane, Tax Policy Director of CIOT, setting out his proposals for strengthening scrutiny of the Finance Bill.

Congratulations to two recipients of CIOT honorary fellowships made at the Institute’s President’s Luncheon today.

The CIOT congratulates Emma Chamberlain on her OBE for services to government tax policy, which was announced in the new year honours last weekend.

From April 2018, Land Transaction Tax (LTT) will replace UK Stamp Duty Land Tax (SDLT) in Wales.  A number of suggestions by CIOT to make it work in practice have been included in recommendations in a Welsh Finance Committee report.

 

Finance Secretary Derek Mackay outlined the Scottish Government’s draft budget for 2017/18 to Parliament on Thursday.  A copy of the full budget document can be found here.

The Private Member’s Bill: Double Taxation Treaties (Developing Countries) Bill had its second reading  in the Commons and was debated by MPs, on 16 December 2016. The Bill will place a duty on the Chancellor to align the outcomes of double taxation treaties with developing countries with the goal of the UK’s overseas development aid programme for reducing poverty and to report to Parliament about it.

The Public Accounts Committee are conducting an inquiry into high net worth individuals (HNWIs) and how HMRC deals with them. HMRC’s High Net Worth Unit raised £416m from its compliance work with this group in 2015–16 according to a report by the National Audit Office (NAO). 

This is the summary of the first meeting of the All Party Parliamentary Group on Responsible Tax (the APPG), excluding its AGM, since it received submissions on its Inquiry into public confidence in HMRC’s capability to collect tax fairly and effectively.  This is the second work stream of the APPG (following one on BEPS). This includes looking at customer service experience and how HMRC fights tax avoidance and evasion.