Tag: Customs

May to seek ‘binding changes’ as MPs oppose no-deal Brexit

Prime Minister Theresa May declared that she will seek “legally binding changes” to her Brexit deal after members of Parliament voted to back a new proposal to replace the Northern Ireland backstop.

But a spokesman for European Council President Donald Tusk told reporters, in response to a series of House of Commons votes late on January 29, that “the backstop is part of the withdrawal agreement, and the withdrawal agreement is not open for renegotiation”.

My news story for Tax Notes (paywall), published January 30, also published in the February 4 edition of Tax Notes International:

May to Seek ‘Binding Changes’ as MPs Oppose No-Deal Brexit

UK firms ‘praying’ for more time to plan for Brexit

Planning for a no-deal Brexit among larger businesses is “highly variable,” but prudent firms will keep preparing so long as such an outcome “remains an option,” said James Stewart, head of Brexit at KPMG UK.

“Many of the businesses we’re speaking to are praying for an extension to article 50,” Stewart said in a January 28 statement. “At this stage even our most informed clients feel as if anything could happen. They’re thinking about getting products from A to B, market access, and staffing up situation rooms for April,” he said, adding that there are “no safe bets.” My news story for Tax Notes (paywall), published January 29:

U.K. Firms ‘Praying’ for More Time to Plan for Brexit

Business leaders vent frustration ahead of Brexit vote

A no-deal Brexit cannot be “managed” and is “certainly not desirable,” said Carolyn Fairbairn, Confederation of British Industry director general, as business leaders expressed frustration over the continued political impasse.

“The responsibility to ensure an orderly exit is now in Parliament’s hands. Each MP is democratically chosen to safeguard the security and prosperity of our country. And next week they face a test. If they meet it with yet more brinkmanship, the whole country could face a no-deal, disorderly Brexit. The economic consequences would be profound, widespread, and lasting,” Fairbairn told a business audience in Bristol January 11…

My news story for Tax Notes (paywall), published January 12:

U.K. Business Leaders Vent Frustration Ahead of Brexit Vote

Other stories published in week of January 7:

Labour Leader Prioritizes Election and a New Brexit Deal

MPs Vote to Tighten Grip on Brexit Process

‘Stormont Lock’ Fails to Win DUP Support for Brexit Backstop

 

May urged to rule out no-deal Brexit after finance bill defeat

The UK Parliament’s vote to restrict a new Treasury power to make tax regulations shows its determination to prevent a “chaotic and damaging” no-deal Brexit, said Labour member of Parliament Yvette Cooper. My news story (paywall) for Tax Notes, January 9:

May Urged to Rule Out No-Deal Brexit After Finance Bill Defeat

May suffers setback as Conservatives back no-deal Brexit

Prime Minister Theresa May continued to seek reassurances from European leaders about the EU withdrawal agreement as it emerged that most members of her own party would favour a no-deal Brexit.

Three-quarters of respondents in a survey of 1,215 Conservative Party activists said they regarded as “exaggerated or invented” warnings that a no-deal Brexit could cause severe short-term disruption, such as shortages of food and medicines. My news story (paywall) for Tax Notes, January 7:

May Suffers Setback as Conservatives Back No-Deal Brexit

Digital services tax, business rates, employment status and Brexit

Tax Notes published (paywall) the following articles in the week of December 17:

U.K. DST Not Intended to Resolve Business Rates Issue
There is no formal link between a digital services tax and reductions in business rates, members of Parliament were told two days after they asked Amazon UK to disclose its U.K. sales and tax liabilities.

U.K. Business Groups Urge MPs to Prevent Disorderly Brexit
There is not enough time to prevent “severe dislocation and disruption” in a no-deal Brexit, five U.K. business groups said as they urged members of Parliament to prevent a disorderly exit March 29, 2019.

U.K. Steps Up No-Deal Brexit Plans Amid Anger Over Vote Delay
Cabinet ministers decided to step up preparations for a no-deal Brexit, as U.K. Prime Minister Theresa May’s critics denounced her decision to defer a vote on the EU withdrawal agreement until mid-January.

U.K. Tax and Employment Rights Plan Draws Lukewarm Response
Aligning the existing employment status frameworks for tax and employment rights purposes will be difficult if the government continues to rule out changes to national insurance contributions, U.K. tax professionals said.

Juncker Seeks to Lower Temperature After Fraught Brexit Talks
U.K. Prime Minister Theresa May maintained that she is still seeking “further assurances” about the proposed Northern Ireland backstop, after EU-27 leaders reiterated that the Brexit deal is “not open for renegotiation.”