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Last Updated: Friday, 17 November 2006, 11:03 GMT
Tax reform to help big business
Gordon Brown
Mr Brown wants to make things easier for businesses
Changes to the way tax officials deal with large companies are expected to be announced by the chancellor later.

Gordon Brown will say he fully accepts the recommendations of Sir David Varney, who has been reviewing tax affairs of big corporations.

CBI head Richard Lambert has said high business taxes and the "aggressive" way HM Revenue & Customs pursued them, was driving multinationals out of the UK.

Mr Brown is expected to announce measures to reassure businesses.

It follows criticism by some in business and the City who complain the UK economy is losing competitiveness.

Companies relocating

Last month Mr Lambert warned that the "trickle" of companies relocating outside the UK could become a "flood", if nothing was done.

Mr Brown is expected to announce a system of advance rulings, aimed at giving businesses greater certainty about their tax position before they go ahead with major investments.

Other recommendations from Sir David are thought to include a "risk-based approach" to inquiries.

It is intended to reassure companies that only important issues are examined and will be dealt with more quickly.

Mr Brown will make the announcement at the first meeting of his international business advisory council at Downing Street.

It includes leading figures from economics and business such as former US Treasury Secretary Robert Rubin, former World Bank chief James Wolfensohn and GlaxoSmithKline chief executive Jean-Pierre Garnier.




SEE ALSO
High tax 'forces firms out of UK'
10 Oct 06 |  Business
Brown and Cameron battle for City
18 Oct 06 |  UK Politics
How Brown learned to love banks
12 Oct 06 |  Business
Cameron facing tax cuts demands
02 Oct 06 |  UK Politics
Cameron 'faces �20bn tax cut row'
22 Sep 06 |  UK Politics
Tory party hints at tax cut plan
27 Aug 06 |  UK Politics

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