Tax framework for business

Our predictions

The need for a principles-based tax system has been highlighted by many observers over many years.

As we approach an election where one of the issues is likely to be the need to balance public finances over the following years, the need to prevent tax leakage by reason of international tax competition is heightened. A document for consultation (Tax framework for business) has been published and will undoubtedly form the basis for much of the commentary even though there is unlikely to be any concrete proposals for many years. By way of example, the long running consultation over the treatment of controlled foreign corporations (CFCs) continues and will not result in any legislation until 2011.