Has the U.K. become a tax haven?

first_img continue reading » ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr U.S. companies are increasingly viewing the U.K. as a place to relocate to pare their tax bills.by. Alanna PetroffWhy? Relatively low tax rates and a business-friendly environment.Pfizer (PFE, Fortune 500) was the latest high-profile example; it tried to take over the British pharmaceutical firm AstraZeneca (AZN).American and French media giants Omnicom (OMC, Fortune 500) and Publicis (PGPEF) also planned a mega-merger that would have seen the new firm domiciled in the U.K., though the deal was scuppered.Meanwhile, the British-based InterContinental Hotels (IHG) was reportedly approached by a U.S. suitor who may have been looking to take advantage of a more favorable U.K. tax system.British corporate tax rates are near 20%. In the U.S., rates are closer to 40% — among the highest in the developed world.The U.S. also levies high taxes on income that’s earned abroad and brought back — or repatriated — to the States.last_img

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