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MNCs in UK Wait with Baited Breath as Tax Reform to be Focus of Autumn Statement

4 Dec 2012
"The UK Chancellor, George Osborne, launched another shot across the bows today as part of a renewed assault on multinationals operating in the UK and internationally.

The announcement of additional funding allocated to HMRC will enable the department to increase the level of scrutiny of transfer pricing arrangements, which is aimed at the claimed 'immoral' practice of tax planning conducted by multinationals.

Multinationals around the world are being forced to operate amidst rapid changes to legislation and mounting scrutiny. These knee-jerk policy changes leave companies feeling penalised by politicians and unable to effectively plan their business operations. We should also remind ourselves that these companies are simply not breaking the law but are rightly engaging in legitimate tax planning activity.

It's clear that tax reform will be a major focus for governments in 2013 as they struggle to balance the conflicting priorities of attracting international business with reforms to appease public outcry, creating an environment of unprecedented uncertainty.

Frederic Donnedieu de Vabres, Chairman of Taxand, the world's largest independent global organisation of specialist tax advisors to multinational businesses.

For further information please contact:
Abigail Tarren
T. +44 20 7715 5243

Taxand's Take

"Multinationals operating in the UK now wait with baited breath for the full extent of the proposals which will be announced during Wednesday's Autumn Statement."

Taxand's Take Author