Foreign companies that take over UK companies for tax reasons should be welcomed, according to the chairman of PwC UK.
The recent attempt by US drug maker Pfizer to buy its UK-Swedish rival, Astra Zeneca, was partly based on the tax it would save by domiciling its company in the UK where the corporate tax rate is lower than the US.
Politicians and tax campaigners have criticised these inversion deals but PwC's Ian Powell said that the UK’s low corporate tax rate helps British business, and should not be dismissed, the Telegraph reported.
“As an open economy, that’s one of the huge strengths of the UK...
About Nick Huber
I’m a specialist business journalist and have a particular interest in tax and technology.