Varney contradicts Alexander on corporation tax

When Labour’s Holyrood leader Wendy Alexander announced her devolution proposals last month, she cast some doubt over whether the Scottish Parliament could legally be given control of corporation tax:

We should approach this with an open mind but there are constraints
here.   Some suggest VAT for example but EU rules appear to preclude
VAT variation within a state.   So it could not be a candidate for
devolution, although could be considered for partial assignation.
Likewise the issue of Corporation tax variation within a state also
raises issues of compliance with EU rules (the Azores judgement) as
well as potentially distorted transfer pricing. (Scottish Labour)

In his review of taxation in Northern Ireland, Sir David Varney seems to have clarified the Azores issue:

A move to a differential corporation tax rate for Northern Ireland would be possible in principle. However, it would involve legislative changes and legal issues would affect the design of such a scheme. Also, the fiscal consequences of such a move would have to be borne immediately by the Northern Ireland Assembly. (Varney Review)



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One response to “Varney contradicts Alexander on corporation tax”

  1. Conall McDevitt avatar

    I have read many a government report in my day but this one takes the prize for least convincing and most confusing.
    Having reached page 67 of 130 I am unable to see anyting I could agree with. The man who was responsible for the great success that is Revenue, Customs and Excise (yes the same body that lost all our personal details) seems more interested in defending the interests of the wealthy few in the South East of England than considering Northern Ireland’s future.
    It’s the best case i have read all year for a United Ireland!
    More on

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