McDonalds yesterday announced plans to switch its non-US tax base to the UK in a move that could become an early warning sign of the UK becoming an offshore tax haven from the EU post-Brexit, Labour MEPs have warned.
The European Commission is investigating the tax practices of McDonalds in Luxembourg after it was alleged they avoided more than £1 billion in tax between 2009 and 2013, while the Conservative government has recently pledged to have the lowest corporate tax rate in the G20, meaning the rate could drop as low as 15 per cent if Donald Trump fulfils his own pledge to lower the US tax rate to 15%.
Alex Mayer MEP said: “If McDonalds are relocating their tax base to Britain in order to comply fully with the UK’s 20 per cent corporation tax rate, then we fully welcome their positive move. However there is speculation that some companies are gambling on Britain becoming a tax haven after Brexit. We need the Government to categorically rule that out. Tax avoidance has no border and it is impossible for the UK to tackle it alone.”