Tax commitments rewritten in Brexit deal
Changes in the presentation of “level playing field” commitments in relation to the future EU-UK relationship will make little difference in tax terms, a London-based corporate tax practitioner said.
Detailed commitments on tax, the environment, labour, state aid and competition have been removed from the legally binding withdrawal agreement that was rejected by MPs, and replaced by “short references” in the nonbinding political declaration, BBC economics editor Faisal Islam noted on Twitter on October 18.
The United Kingdom has been “ahead of the EU in implementing global anti-tax evasion and tax avoidance measures,” Clifford Chance LLP partner Dan Neidle tweeted on October 17. The intention is that specific commitments will be included in a future free trade agreement, Neidle told Tax Notes, adding that there is no guarantee of that happening. “This looks like a dramatic change — but in reality these commitments had very little real-world effect,” he said. Read more: