The British Prime Minister Theresa May promised the lowest corporate taxes in the G20 at an economic meeting on the sidelines of the UN General Assembly in New York. May said literally: “Whatever your business, investing in a post-Brexit Britain will give you the lowest rate of Corporation Tax in the G20.”
MEP Sven Giegold, financial and economic policy spokesperson of the Greens/EFA group commented:
“The exit from the EU must not provide a carte blanche for unlimited tax dumping. Tax policy now, has to be at the heart of the Brexit negotiations. Any possible post-Brexit trade agreement should include minimum tax rates. A huge low tax zone in the EU’s immediate neighbourhood cannot be accepted.
Theresa May must not be allowed to mislead us: Already today, companies in Great Britain pay the lowest tax rates of all G20 member states. Even as a member of the EU, Great Britain is already depriving other EU countries of tax revenue. Against resistance from the German government, Great Britain also offers a generous patent box to further reduce tax rates. Britain allows hundreds of thousands of immigrants from the EU not to pay taxes on foreign income and treats them better than British citizens. The “non-dom privileges” for wealthy foreigners should be abolished. In its overseas territories, companies are allowed to reduce their tax payments. The EU must use the Brexit negotiations as a lever against tax dumping on British territory. As a member of the EU, we were only able to counter British tax dumping to a limited extent. Should the UK actually leave the EU, the grace period must end.”
Transcript of the speech of Theresa May:
Overview of tax rates in OECD: