Charity asks UK to reverse move that could cost developing countries £4bn (tax havens)
Source: The Guardian
Britain will deprive developing countries of up to £4bn in tax revenues after a change in the law that could prompt British-owned multinational companies to shift profits into offshore havens, according to a leading charity.
A cross-party parliamentary select committee on Thursday called on the government to conduct a review of the change to the controlled foreign companies (CFC) rules which could have a "detrimental impact" on the tax revenues of developing countries.
The Commons international development select committee issued its warning in a report which cites a claim by ActionAid that the changes, which will be implemented from next January, could cost developing countries £4bn.
Labour said the changes, announced by George Osborne in this year's budget, "make a mockery" of the chancellor's pledge to crack down on tax avoidance.
Read more: http://www.guardian.co.uk/politics/2012/aug/23/commons-committee-urges-tax-change
