Expert urges removal of double tax rule for businesses

Date: 11th September 2008

One international tax expert has urged the government to remove levies on foreign profits for UK companies.

In an interview with the Yorkshire Post, RSM Bentley Jennison partner Pamela Greener said that the current legislation affects all businesses, especially those with overseas operations.

Currently, foreign company laws mean that some businesses are forced to pay tax not only abroad but also in the UK.

Ms Greener said this amounted to "double taxation" and told the paper: "We want to make sure that the competitiveness of the UK tax regime is maintained.

"This is not just an issue for the very largest companies in the UK to express an interest on. This actually affects the ability of small companies to become medium companies to become large companies."

In conclusion, Ms Greener said the issue "goes right to the competitiveness of business in the UK", claiming that an exemption on foreign profits was "a no-brainer".

Responding, a Treasury spokesperson explained to the paper: "We are still at the table talking to business. We are committed to finding a way to deliver that dividend exemption on foreign profits but we are not there yet.

"We need to do it in a way that protects the British tax base and increases the competitiveness of British business."