UK politicians are talking about tax avoidance by American corporations. This ends up being emotional stuff for the British tax paying electorate.
I was fascinated to see an article from Kellogg about American corporations getting better at not paying US taxes:
American corporations are getting better at not paying U.S. taxes. According to the Congressional Research Service, over the past ten years, at least 47 U.S. companies have changed their legal residence for tax purposes—a move known as corporate inversion. Inversions occur when a U.S. business shifts its tax domicile abroad through an acquisition or merger with a non-U.S. partner, thereby reaping the benefits of a lower tax rate. Policy makers are starting to fear the drain on U.S. tax revenue but so far have done little to change the situation. >>> read the full article
It does make me wonder where they do pay their taxes, if at all.
The end of this US-centric article suggests that the best way to deter US corporate inversions is to have an internationally competitive corporation tax rate of say 15% or 20%. And if that were to happen the UK is even less likely to benefit from tax income from US corporates.
Perhaps we should be working hard, now, to make the UK corporate friendly.