The ICAEW and CIOT have jointly written to the Treasury asking that the current review on the future of UK corporation tax be expanded.
I have no problem with that. Indeed, it is obvious that the scope of the review is too narrow and that the range of participants is too limited.
But I do have a problem with what the ICAEW / CIOT have asked for. I am most worried by this:
We also hope that a wider consultation could consider potential incentives to encourage multinationals to conduct business in the UK. Other EU Member States have introduced incentives successfully - and seen economic benefits from them.
I have real concern that they're referring to Ireland. If that is true then I am really worried because if that is so then this a disguised appeal for massive corporation tax cuts, and in the current financial climate this can only mean significant tax increases for ordinary people in this country.
Worse, it shows a remarkable lack of insight into Ireland's situation: if we copy its policy of stealing profits from other countries by artificial inducement to relocate profit we rapidly move towards the corporation tax race to the bottom. Just read what Jim Stewart has to read about this abuse to see what the impact could be.