OECD: Economic Surveys of UK and India
United Kingdom
The OECD has published “Economic survey of the United Kingdom 2007: Tax competition: How to remain competitive?”
In the OECD announcement, it is suggested that the UK Government should consider the case for moving to a dividend exemption system of corporate income taxation, which exempts foreign source dividend income from domestic tax.
India
This survey provides further support that in general when a country reduces a tax rate, the tax take from that tax usually increases.
In addition, the study notes that the treatment of some forms of savings in India is so favourable that they are often exempted from taxation at the time of initial savings, during the period when invested funds earn returns, and finally when investments are liquidated. In the words of the OECD press release it is “a level of generosity that has rarely been found in the OECD area”.