UK Will Veto EU Corporate Tax Harmonisation Plans

by Ulrika Lomas, Tax-News.com, Brussels

12 March 2002

It has emerged that UK Chancellor Gordon Brown intends to veto plans for corporate tax harmonisation across the European Union.

A conference is scheduled here in Brussels for April 29 to discuss 'the best way forward' for tax harmonisation. Following controversial remarks from German Chancellor Gerhard Schroder last month, the issue has been very much in the public eye, with both the UK and Ireland both taking a strong stance against suggestions that certain taxes should be imposed by the EU, rather than by individual member states.

Despite the stated belief of the European Commission that corporate tax harmonisation is 'essential for making the EU the most competitive economy in the world', reports have suggested that Mr Brown will stick to his guns, and block the single European corporate income tax proposal which has been tabled for discussion.

Speaking to the UK Evening Standard, a Treasury spokesman confirmed that the department is vehemently opposed to all outside interference in corporate taxation. 'That has been our position for quite some time,' he explained.

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