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<p>The UK, along with most major economies in the world, charges corporation tax on profits not on sales or turnover. The UK system is based on internationally agreed principles, which determine how much profit each country should tax. However, I cannot comment on the tax system in Ireland.</p><p>The UK is committed to multilateral action through the G20 and OECD to tackle the issue of base erosion and profit shifting (BEPS). The OECD BEPS project has been scrutinising the international tax rules to find where they do not work in today's modern globalised economy.</p><p>The G8 leaders have confirmed their support for the ongoing G20/OECD work. At the Lough Erne summit in June they called on the OECD to develop a common tool for multinationals to report to tax authorities where they make their profits and pay taxes around the world. This work is being taken forward as part of the BEPS action plan.</p> |