These were the words of the Financial Secretary to the Treasury in a recent speech when he spoke about reports that the EU may seek to apply a minimum tax rate on corporate profits. In crystal clear fashion “it ain’t happening”. That speech was delivered at the ‘Britain, Europe and tax competition’ conference, organised by the European Tax Policy Forum and Institute for Fiscal Studies.

Whilst it’s still early days for the new Government the speech did give some insights into the government’s business taxation plans.

Some key points from the speech are set out below:

• There are currently no plans to further reduce the current rate of corporation tax below 20%. However it is clear that the Government is keen to “maintain the most competitive business tax regime in the G20”.
• Continued commitment to the OECD BEPS project and a desire to ensure “the new international tax rules are coherent and fit for purpose” was expressed. The recently introduced Diverted Profits Tax was described as a “tax designed to ensure fairness – not to make ourselves uncompetitive”.
• Perhaps being deliberately vague, individual jurisdictions which allow “certain individuals or companies not to pay tax” were criticised for creating unfair competition.
• The role and capacity of the Office for Tax Simplification will be expanded.
• There is also the promise of reforming the way businesses pay their tax: “Digital tax accounts will be transformational, particularly for small business. For many, this will herald the end of the tax return. Instead, small businesses will be able to link their business software to their digital account, so that they can see their estimated tax bill in real-time and, if they want, set up regular payments to help manage their cash-flow.”

Chartered Accountants Ireland will be watching these developments, particularly the Digital Tax Account, with interest and representing members where appropriate.