Tax experts clashed in a House of Lords Finance Bill sub-committee yesterday afternoon on the issue of taxing multinationals, shining a light on the essence of the avoidance debate.
Following Graham Aaronson’s QC warning earlier in the week that the general anti-abuse rule (GAAR) would be just “one weapon among many” in preventing abuse, the CIOT’s Patrick Stevens said the rule would not stop multinationals using transfer pricing and that you would need to go back to how countries tax multinationals.
Tax commentator Richard Murphy came head-to-head with Stevens and Bill Dodwell when he suggested many large companies were “exploiting loopholes” when choosing where to locate parts of their businesses.
Dodwell was quick to disagree
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Business and finance journalist