Britain considers cutting taxes to compete

One of the plans bandied about in the days after Britain’s vote to leave the EU in June was to slash corporate tax rates to keep the country competitive, reports Bloomberg, but it will take more than a tax cut to keep Britain’s economy on an even keel.

The prospect of a race to the bottom is worrying to European finance ministers who already face the prospect of lower service standards and higher deficits. Other countries (Canada included) have been systematically hunting down tax loopholes and closing them.

Read: B.C. supports housing vacancy tax in Vancouver

But some countries are moving in the opposite direction — think Ireland, the Cayman Islands and Bermuda. In fact, London is already known as a financial haven for the worlds’ oligarchs, who use numbered companies to park their wealth in the city’s luxury real estate market.

What’s good for some countries, or parts of the British economy, might not be good for all of it, Bloomberg argues. Read more here.

Also read:

B.C. to end self-regulation of real estate industry

What the CSA’s bombshell proposals mean for you

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.