Tax haven route won't work for post-Brexit UK, says OECD

The United Kingdom is unlikely to try to lure international investment by becoming a tax haven after it leaves the European Union, according to an internal memo prepared by the body responsible for the drafting international tax rules. The head of tax at the Organisation for Economic Co-operation and Development, which advises developed nations on policy, said the UK could use its freedom from EU rules to slash corporate tax but the political price would be high. The idea the country may cut tax on multinational companies' profits, which could also help them avoid tax on profits made elsewhere in the EU, has been raised by some accountants and policy experts since the country voted to leave the bloc. "The negative impact of the Brexit on UK competitiveness may push the UK to be even more aggressive in its tax offer," the OECD's head of tax, Pascal Saint-Amans said in the memo, details of which were seen by Reuters. "A further step in that direction would really turn the UK into a tax haven type of economy," he said, adding that there were practical and domestic political barriers to doing this. The OECD declined to comment on his memo, dated June 24, and a separate one seen by...

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