Business leaders have welcomed a government climbdown on the taxation of companies' foreign profits, but said that there was still more work to do before both sides could reach an agreement that would pave the way for a new tax policy, The Times reports.
The Treasury outlined its reversal on its controversial tax proposals in a letter sent to the CBI and made public yesterday. Jane Kennedy, the Financial Secretary to the Treasury, said that the Government planned to make dividend payments on foreign profits exempt from UK tax. She said that plans to police the exemption would be dropped in the existing form. However, she said that the cost to the Treasury, estimated at hundreds of millions in potential lost tax take, meant that firm proposals could not be drawn up in time for next year. “Based on these estimates, my current view is th...
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