Molly, who is a member of the European Parliament’s Panama Papers tax committee, has welcomed the announcement by EU Competition Commission Margrete Vestager of an investigation into the UK Controlled Foreign Companies (CFCs) rules. It has long been suspected that these rules give an unfair advantage to large companies residing in the UK compared to small businesses. Molly said:
“We welcome the decision by Commissioner Vestager to investigate the use of CFC rules by the UK Treasury to unfairly attract corporate business to the UK. Once again Vestager plays her role as the white knight of global capitalism fighting against the race to the bottom on tax and hence public investment.
“This action against a member state that is in the process of exiting the EU is an interesting one. It suggests that EU leaders plan to use Brexit as an opportunity to undermine the anti-social behaviour of successive UK governments in supporting a global network of tax avoidance.
“Brextremists may yearn for a future outside global norms but Vestager’s action today makes clear that it is to have any chance of a trade deal with frictionless access to the single market, the UK will have to clean up its act on tax.”
Molly reported in Express story here