13 May 2015
While we might be rivals in the cricket, I think Britain and Australia are treading similar paths when it comes to tax avoidance by huge multinationals. There was a story in the news about this recently, as Australia’s Treasurer Joe Hockey plans to introduce a crackdown.
I’ve spoken about this before, as it’s an issue I care deeply about. In order to strengthen our country’s economy, there has to be a level playing field between British SMEs and big foreign corporates. By diverting profits offshore, these companies sweep money out of the country and gain an unfair advantage over tax-paying SMEs who are playing fair and losing out.
In his last Budget, George Osborne announced a diverted profits tax, which is a step in the right direction when it comes to giving SMEs a fighting chance against major international players. The current government seems committed to working towards a national budget surplus, which would be an incredible achievement; especially if it creates a fairer environment for SMEs to compete and succeed in the process.