The UK is becoming a country of low tax havens, but it’s not because it’s doing so badly economically, according to a new report from the Tax Justice Network.
A study by the organisation, released today, found that tax havens in the UK were providing “no economic benefits to UK citizens and multinationals”.
The report argues that the UK’s tax system has become “a low-tax, low-revenue, low tax haven”.
The UK’s rate of corporate tax has fallen from 33 per cent in 1990 to 17 per cent today, and there’s also been a decrease in the tax paid on dividends and capital gains.
The Tax Justice Project is calling for the government to change the way it taxes profits, including a new system that would reduce the amount of corporation tax paid.
In recent years, the UK has been the only G7 country to not tax all profits made in its territories, with the exception of Switzerland, which did so in 2012.
The UK also has a system of “reverse taxation”, where businesses can earn tax on income from overseas but not income from the UK.
The TJP report found that this tax system is not just ineffective, but also extremely unfair to multinationals.
“In this country, the only tax they pay is in the form of a tax on their earnings, so if they’re not able to get their taxes down, that means they’re out of business,” said Professor David Anderson, who is the author of the report.
“It’s the only way that they can effectively take advantage of this low tax rate.”
Professor Anderson has been campaigning for years for the introduction of a new UK tax system, which would bring in “real, revenue neutral, economic tax relief”, such as reducing corporate tax to below the rate of 32 per cent, and reducing inheritance tax to 20 per cent.
The government says it is committed to the introduction and enforcement of the UK tax regime, and has been working on a new tax framework for the past 12 months.
But the Government has been unable to reach agreement on how to achieve this.
The Government is currently reviewing its tax system and it has been reported that a new government would look to introduce a “tax rate relief scheme”, in which the rate would be reduced by a proportion of the rate paid by the UK in income tax.
But this would require a change to the tax system itself, and not necessarily a change in the way tax is paid.
The new tax system would not change the rate on the first £1 million of taxable income.
But Professor Anderson said that while it was not yet clear what the Government would do to address the tax gap, the issue could be resolved by introducing a tax rate relief system.
“The Government is committed and is currently looking at proposals on a tax relief scheme.
That’s something that would be very effective,” he said.
“But there’s nothing in the legislation that says that it’s a tax-free tax system.”
In the end, it’s up to the government whether to introduce any new taxes, or simply to “revisit” existing ones, Professor Anderson told the BBC.
“We’re seeing the Government being very slow to get around this issue.
It’s not surprising that the government hasn’t done enough,” he added.
The report also highlights that the Government is now considering a plan to increase corporation tax by a further 6 per cent by 2020, to reach £150 billion.
Professor Anderson pointed out that a tax system based on a single rate, such as 32 per.cent, would be a bad idea for UK businesses, because it would be “unfair” and “impossible” to raise revenue from this higher rate.
“Corporations would be able to do more of their business in other countries, which means they would be taxed more, which could result in lower revenues,” he argued.
They are not able, therefore, to use that income to finance their businesses.” “
There are some small businesses who have very little turnover and could not afford to pay more taxes.
They are not able, therefore, to use that income to finance their businesses.”
Professor James Dyson, who chairs the TJP, said that he hoped the Government’s proposals would be made, but that he was not confident that they would happen.
“What is most worrying is the lack of a clear plan to change corporate tax rates and to reduce the tax on the profits of multinationals,” he told the programme.
“And the Government should be making this policy to achieve the UK government’s stated goal of ‘fair, effective and sustainable taxation’.” Professor Dyson argued that while the UK could achieve “revenue neutral” rates by increasing the tax burden on the wealthy, “there is a very high degree of fairness” in the current tax system.
He said that the country should be able “to do the right thing” by lowering the rate “as part of the tax and spend policy”.
“The UK government is not making any changes to the taxation of