The UK Labour Party in its manifesto for the upcoming election has committed to introducing unitary taxation of multinationals groups.
Labor has adopted recommendations in an independent report Tax Multinationals: a New Approach authored by Sol Picciotto, senior adviser to the Tax Justice Network and coordinator of the BEPS Monitoring Group and Daniel Bertossa, Assistant General Secretary of Public Services International.
Labor also promises “the biggest ever crackdown on tax avoidance and evasion.”
Further, the party will also reverse recent UK corporation tax cuts while keeping rates lower than in 2010. The plan would gradually reverse cuts to corporation tax to 21% (Small Profits Rate) and 26% (main rate).
A windfall tax on oil companies would also be enacted so that companies that knowingly damaged the climate will help cover the costs.
Finally, Labor has pledged to examine existing UK corporate tax reliefs so see if they accomplish their stated aims. The party will also seek to ensure stronger transparency and accountability concerning the creation and maintenance of corporate tax reliefs.
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