We've just had a paper on the possible impact unitary tax would have on EU member states. It suggested that this might give an 8% increase to the UK corporation tax take.

The "off the cuff" response from HMRC? It was "we wouldn't welcome that. This might make the UK look less attractive".

Actually, that's completely untrue. But it is an interesting insight into their approach to the whole issue of international tax of corporations. The other interesting insight into which is that the proposed reforms are planned to be revenue neutral. But as the existing arrangements raise almost no tax that must mean the new ones won't either. Ho hum.

PS (added 2-7-07). I should clarify: If on the basis of the assumptions in the study the UK could get 8% more tax it could cut its tax rate and still achieve the same level of tax as now. This accords with UK policy. This was the reason why I was bemused by the response from HMRC.