Monday, July 4, 2016

Osborne wants to reduce the corporate tax side to Brexit – The Obs

LONDON (Reuters) – British Minister of Finance George Osborne plans to lower the corporate tax below 15% to reduce the impact of the British decision to leave the European Union on investments writes Financial Times on Sunday.

the newspaper, which quotes the Chancellor of the Exchequer, also indicates that London intends to strengthen its relations with China to offset the possible effects of Brexit on trade with the EU.

George Osborne told the FT he wanted to build a “super competitive economy” based on a low corporate taxation and the conquest of new markets.

March, the Minister of Finance indicated that he intended to bring the corporate tax from 20 to 17% by 2020.

in most developed economies, this tax is on average 25%.

Ireland, where the corporate tax is 12.5%, says the announcement of George Osborne is the illustration of a rapidly changing financial dynamics within EU after Brexit.

“plate tectonics is changing and what are the warning signs. This should strongly remind us that our tax system and structure are essential to our national competitiveness, “said Paschal Donohoe, Irish Minister for Public Development, on RTE radio.

To the Minister of Transport Irish, Osborne’s announcement is “an obvious attempt” to attract investors and convince them to leave Ireland.

“If the figure drops to 12.5% ​​in the United Kingdom, this would be a threat to us and we will take steps to adapt accordingly, “said Shane Ross, an independent minister.

Meanwhile, the Netherlands has also announced that they would see their tax rates to remain attractive.

“It’s something that we think in terms of the future,” said a spokesman of the Dutch Ministry of Finance. ” We wish to fight against tax evasion but we must also think about our investment climate. “

A German Ministry of Finance spokesman said that any proposed reduction of taxation should be fair. “It is clear that the purpose of government (German) is that this issue of taxation must be treated fairly in a single market,” said Martin Jäger.

According to the Organization for Cooperation economic and development (OECD), a further decline in corporate tax is unlikely in the UK but if decided, it would lead “to an economy such as that of a tax haven.”

(William Schomberg and Abinaya Vijayaraghavan; Tangi Salaün for the french service)

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