All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

Global Tax 50 2015: George Osborne

Chancellor of the exchequer, UK

George Osborne

George Osborne was also in the Global Tax 50 2014

"Let the message go out: this country's tolerance for those who will not pay their fair share of tax has come to an end," proclaimed UK chancellor of the exchequer George Osborne in March as he announced new measures to crack down on tax avoidance and evasion, including the headline-grabbing diverted profits tax (DPT) – referred to by some as the 'Google tax'.

The tax, which came into effect on April 1, is expected to raise £3.1 billion ($4.4 billion) from multinationals by 2020. It imposes a tax rate five percentage points higher than the otherwise applicable UK tax rate, and is applied to profits which companies are deemed to have "artificially diverted" from the UK.

The measure was likely taken with one eye on the UK general election, from which Osborne's Conservative party emerged victorious, managing to secure a slim majority which allowed them to dispense with their coalition partners from the previous government.

While the narrowness the Conservative majority may make it difficult to pass some legislation – particularly any which might substantially cut tax revenues garnered from companies, given the shift to the left of the main opposition Labour party – the government has managed in many instances to sidestep parliamentary scrutiny by using 'statutory instruments', which can approve new legislation without the need for a House of Commons debate.

In his first Budget of the new government, Osborne announced that corporation tax will fall to 19% in 2017 and by a further percentage point in 2018, as part of the government's aim for the UK to have the most competitive tax regime in the G20 and send a strong signal to investors that Britain is 'open for business'. Osborne will hope that the inflow of businesses – and many are relocating to Britain, both from Europe and further afield – will help plug the hole which still remains in the UK's finances, as deficit reduction targets have been missed due to lower-than-expected growth.

The past 12 months saw Osborne come under challenge over the UK's attractive patent box regime, however, which faced regime-tweaks in order to comply with the modified nexus approach heralded by the OECD's BEPS Project. Despite those modifications, and the expected uptake of the majority of BEPS recommendations, Osborne is still steering the UK down the pro-tax competition path and the country retains a range of attractive tax credits for businesses.

An important task for Osborne during the year ahead will be preparing for the 2017 referendum on the UK's EU membership. The referendum, which looked to be set for a cut-and-dried 'in' vote when it was announced, is now a much closer affair.

Osborne is likely to position himself in favour of staying in, in accordance with most businesses. Should he negotiate the next few years successfully, he will have his eyes firmly fixed on the leadership of the party – Prime Minister David Cameron has announced he will not seek a full third term, and Osborne is among the front-runners to succeed him.

The Global Tax 50 2015

View the full list and introduction

The top 10 • Ranked in order of influence

1. Margrethe Vestager

2. Pascal Saint-Amans

3. Wang Jun

4. Arun Jaitley

5. Marissa Mayer

6. Will Morris

7. Ian Read

8. Pierre Moscovici

9. Donato Raponi

10. Global Alliance for Tax Justice

The remaining 40 • In alphabetic order

Brigitte Alepin

Andrus Ansip

Tamara Ashford

Mohammed Amine Baina

Piet Battiau

Elise Bean

Monica Bhatia

David Bradbury

Winnie Byanyima

Mauricio Cardenas

Allison Christians

Rita de la Feria

Marlies de Ruiter

Judith Freedman

Meg Hillier

Vanessa Houlder

Kim Jacinto-Henares

Eva Joly

Chris Jordan

Jean-Claude Juncker

Alain Lamassoure

Juliane Kokott

Armando Lara Yaffar

Liao Tizhong

Paige Marvel

Angela Merkel

Zach Mider

Richard Murphy

George Osborne

Achim Pross

Akhilesh Ranjan

Alan Robertson

Paul Ryan

Tove Maria Ryding

Magdalena Sepulveda Carmona

Lee Sheppard

Parthasarathi Shome

Robert Stack

Mike Williams

Ya-wen Yang

more across site & bottom lb ros

More from across our site

The UN may be set to assume a global role in tax policy that would rival the OECD, while automakers lobby the US to change its tax rules on Chinese materials.
Companies including Valentino and EveryMatrix say the early adoption of EU public CbCR rules could boost transparency of local and foreign MNEs, despite the short notice.
ITR invites tax firms, in-house teams, and tax professionals to make submissions for the 2023 ITR Tax Awards in Asia-Pacific, Europe Middle East & Africa, and the Americas.
Tax authorities and customs are failing multinationals by creating uncertainty with contradictory assessment and guidance, say in-house tax directors.
The CJEU said the General Court erred in law when it ruled that both companies benefitted from Italian state aid.
An OECD report reveals multinationals have continued to shift profits to low-tax jurisdictions, reinforcing the case for strong multilateral action in response.
The UK government announced plans to increase taxes on oil and gas profits, while the Irish government considers its next move on tax reform.
War and COVID have highlighted companies’ unpreparedness to deal with sudden geo-political changes, say TP specialists.
A source who has seen the draft law said it brings clarity on intangibles and other areas of TP including tax planning.
Tax consultants say companies must not ignore financial transactions in their TP policies as authorities, particularly in the UK, become more demanding.