Molly has welcomed moves by the European Commission to tackle corporate tax avoidance. Speaking in the European Parliament yesterday on the Commission’s new proposal for a Common Consolidated Corporate Tax Base (CCCTB), Molly Scott Cato said:

“The way we currently tax companies, treating subsidiaries from the same company as if they are completely independent entities, does not reflect the reality of their operations. Implementing a common and consolidated system for taxing companies across the Union would be a crucial step towards ending tax avoidance by global corporations. But I would also stress the importance of moving towards a minimum corporate tax rate across our continent, bringing an end to the race to the bottom on rates.”

However, Dr Scott Cato also warned that the UK was in danger of moving in the opposite direction to the EU on tackling corporate tax avoidance:

“The UK, is now at a crossroads. Will we follow Europe in promoting action to end corporate tax avoidance, or follow the route being pushed by some hard-Brexit supporters and become one of the globe’s leading tax havens? It is clear that the public interest will be best served by following the EU’s ambitious lead on tax policy and we must all work to ensure that Brexit does not encourage further tax competition between countries.”

Full speech to the European Parliament

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