{"id":35099,"date":"2016-10-23T10:35:31","date_gmt":"2016-10-23T09:35:31","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=35099"},"modified":"2016-10-23T10:35:31","modified_gmt":"2016-10-23T09:35:31","slug":"tax-haven-uk-is-a-domestic-and-international-economic-disaster-in-the-making","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2016\/10\/23\/tax-haven-uk-is-a-domestic-and-international-economic-disaster-in-the-making\/","title":{"rendered":"Tax haven UK is a domestic and international economic disaster in the making"},"content":{"rendered":"

The Jersey economy, as I have often pointed out, is the surest evidence that slashing corporate tax rates does not work only guarantees one thing, which is a giant black hole in public finances<\/a>. But a Sunday Times email this morning says:<\/p>\n

The Sunday Times<\/i> reveals this morning that one of the biggest cards the government thinks it has to play is to wield the threat of a huge cut in business taxes. Under the plan the UK would cut the headline corporation tax rate from 20 %to 10 % if Britain's EU rivals blocked a free trade deal with the UK or refused to give financial services firms the \"passports\" they need to gain access to the European market.<\/p>\n

They believe that would encourage firms to stay and make the UK a magnet for new companies, as Ireland and Singapore have become.<\/p><\/blockquote>\n

There are three things to say in addition to noting the Jersey style domestic economic disaster that such a policy would foretell. First, Ireland and Singapore attract business because they are conduits to markets but the UK will be giving up that role with the EU: the tax incentive will count for nothing in that case.<\/p>\n

Second, Ireland and Singapore (et al) made their mark in the era of intense tax\u00a0competition and little cooperation. In the era of country-by-country reporting and tax cooperation that opportunity will be gone. The UK cannot win from this policy in that case.<\/p>\n

Third, the EU is already looking at preparing a list of tax havens against which to apply sanctions. The UK looks as though it has just applied for membership. I have no doubt it would have some pleasure in imposing them<\/p>\n","protected":false},"excerpt":{"rendered":"

The Jersey economy, as I have often pointed out, is the surest evidence that slashing corporate tax rates does not work only guarantees one thing,
 Read the full article…<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[64,35,44,7,32],"tags":[],"class_list":["post-35099","post","type-post","status-publish","format-standard","hentry","category-corporation-tax","category-economics","category-europe","category-jersey","category-tax-havens"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/35099","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=35099"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/35099\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=35099"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=35099"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=35099"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}