Theresa May has announced that it’s time for the UK to stop treating multinationals like it’s their boss.
The prime minister told the business leaders of the G20 that the country is facing a massive corporate tax evasion problem.
“We’ve got to stop pretending we’re your boss.
We’re not,” May said.
And she is, according to a new study from the think tank Oxfam.
Oxfam’s study has found that the UK is now home to one of the highest rates of tax evasion in the OECD.
Its figures show that the highest tax rates are in Australia, New Zealand and Germany, and the lowest are in the United States.
May’s tax crackdown, announced on Monday, is designed to get companies to pay their fair share of taxes and boost investment.
There’s been a lot of pressure from MPs and other politicians to tackle the tax dodging that’s taken place.
But May said she’s decided to go the extra mile by offering companies tax breaks worth £100m a year to help them get through the new year.
That’s compared to £1.6bn for all other G20 countries.
What is the UK doing with the money?
The prime minster has promised to use the money to help small businesses, which account for around 40% of the UK economy.
She has said that the money will be spent on jobs creation and investment, but it’s unclear what that investment will be.
We don’t know how many small businesses the Government will be funding.
It’s possible they will be targeted for tax avoidance, or targeted for their workforce, which will be the most vulnerable part of the economy.
What is tax evasion?
What does this mean?
The UK has been a global tax haven for years, with the country having a reputation as a tax haven in general.
According to the OECD, the UK accounts for over £50bn of tax avoidance in the entire world, while the US is responsible for more than £6tn of tax dodging.
Tax evasion is a major problem for the government, which has already been hit hard by the Brexit vote and the election of Donald Trump.
Corporate tax evasion has been blamed for driving down the value of UK stock markets, causing a drop in demand for imports and causing a rise in inflation.
This has led to some businesses being forced to shut down, which in turn has led people to rely more on cashier-type services.