Reduce corporation tax, says IoD
THE Institute of Directors (IoD) is calling for a reduction in corporation tax to 15% to put the UK ahead of the global pack.
The proposal forms part of a major report on the long-term reform of the country’s tax system published today.
It claims that reducing corporation tax will take the pressure off transfer pricing and controlled foreign companies’ regimes allowing those regimes to be less forbidding to multinational groups.
Complications and distortions in the tax system could also be cleared out in a painless way if the corporation tax rate were falling.
The IoD is also calling for a reversal in the proposed national insurance contribution increase.
It says that the overall package of proposals implies a tax reduction of between £36bn and £42bn by the end of 10 years.
Miles Templeman, IoD director general said: “We must look beyond the current fiscal crisis. There will come a time when we can start serious reform of the tax system, in order to make the UK a more attractive location for business.
“We need to plan for that opportunity, and set out a clear direction, now. The UK has slipped so far down the league table, especially on corporation tax, that the confidence of international business needs to be restored as soon as possible.”
