Tax and the City review for March 2021

Budget 2021 announces an increase in the rate of corporation tax to 25% from April 2023 but promises a review of bank taxation in the autumn to ensure that the combined rate of tax on banks’ profits does not increase substantially from its current level and remains competitive with the UK’s major competitors in the US and the EU. The OECD publishes the international compliance assurance programme handbook for tax administrations and MNE groups which contains information on the process reflecting the experience and feedback of tax administrations and MNE groups that participated in the two pilots. The Court of Appeal in Eastern Power Networks and others warns against the use of the closure notice procedure by taxpayers to pick and choose which information they provide and then ask the tribunal to decide the applicability of one element in the hope that a ‘quick win’ will bring the...