Commenting on today’s proposals for the reform of the ‘controlled foreign companies’ tax regime, Simon Palmer, international tax partner at KPMG in the UK, said:
“HM Treasury’s proposals on reforming the ‘Controlled Foreign Companies’ regime issued today are largely successful in striking the very difficult balance between delivering a more competitive tax system, protecting the UK tax base and attempting to ensure that the rules are suitable for all sectors and businesses.
“And with this almost final piece of the long process of reforming the UK’s overall foreign profits tax regime, hopefully we will no longer see businesses emigrating from our shores: indeed some may now return.
“However, the position of intellectual property used overseas looks problematic. For example, for consumer goods businesses and other heavy users of IP the rules look like they will increase the compliance burden and may lead to additional tax cost. This is an area that business will want to explore in the consultation process.”
For further information please contact:
Margot Cowhig, KPMG Corporate Communications
Tel: 0207 694 4246 Mobile: 07920 274856: firstname.lastname@example.org
KPMG Press Office: 0207 694 8773
Notes to editors.
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with nearly 11,000 partners and staff. The UK firm recorded a turnover of £1.6 billion in the year ended September 2010. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 150 countries and have more than 138,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.