PwC Calls For Lower UK Tax Rate For E-Business Profits
The head of PricewaterhouseCoopers'
international Pathfinder group, Maxwell Nisner, called yesterday
for the UK government to take urgent action to create a reduced
rate of corporation tax for e-business and e-commerce operations.
He warned that the Internet business sector was going to grow
faster than anyone had predicted, and that the government was
risking the loss of much of the UK's share of that growth if it
did not act quickly, for instance matching Ireland's new corporation
tax rate of 12.5%. The government certainly is being
slow - they always are - as witness the laboured birth of its
e-commerce bill which is going to be too little, too late. However,
the chances that the EU would let it install a corporation tax
rate of one quarter of those in a number of other member states
are presumably miniscule. And, how do you define e-business profits?
It would be the biggest tax loophole ever! The euro-sceptics calls for unilateral
action on the EU are not based on tax issues as such, but if Mr
Nisner is right, remaining in the EU's fiscal regime will turn
out to be suicidal for any country that wants to win the e-commerce
stakes. .
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