US tax reform: badly needed, but is the destination right?

Back in 1988, the economist Larry Summers explained why the US had no VAT: ”Liberals think it’s regressive and conservatives think it’s a money machine. If they reverse their positions, the VAT may happen.” Nearly 30 years later, the US still doesn’t have a VAT. But recent tax reform proposals by the Republican party would bring … More US tax reform: badly needed, but is the destination right?

Making Tax Digital: fundamental questions remain unanswered

The government’s response to the consultation on “Making Tax Digital” – requiring businesses to keep digital records and make quarterly updates to HMRC – was published this week, together with draft legislation. But, rather like Theresa May at a press conference, the government doesn’t answer some of the big questions. Businesses, agents and rep bodies … More Making Tax Digital: fundamental questions remain unanswered

Scandal in Frankfurt: tax avoidance pays dividends for German banks

Last Thursday’s FT carried an intriguing story about a German tax avoidance scheme with €billions at stake: the so-called “cum-cum” dividend-stripping device. While we generally think of the Germans as highly disciplined, this looked like an example of complete chaos. And the aggressive artificiality of the scheme took me back to the dark ages of … More Scandal in Frankfurt: tax avoidance pays dividends for German banks

Raisins or cherries, the message remains the same

Angela Merkel warned last week against British cherry–picking on Brexit. Or rather, she warned against “Rosinenpickerei”, which literally means raisin-picking. But this is hardly news. On 28 June, 5 days after the referendum, Merkel first included such a warning in a speech to the Bundestag, immediately before the European Council meeting and the first informal … More Raisins or cherries, the message remains the same