Monday, May 5, 2014
Financial Times: Countries Slow Race to Bottom on Tax Competition:
The proposed takeover of UK-listed drug group AstraZeneca by Pfizer of the US has reignited the debate over tax competition between countries.
A study by KPMG, the professional services group, published last week found that nearly one in six countries had cut their corporate tax rates over the past 15 months, but that the size of the cuts was smaller than in the past. [Corporate and Indirect Tax Rate Survey 2014]
Commenting on the report, Chris Morgan, a partner at KPMG, said rates appeared to be levelling off, marking an end to what economists have described as the ‘race to the bottom’ on corporate tax. “There is a natural level below which they are not going to fall below, which appears to be around 20 per cent.”