Attracting multinationals to their shores

I don’t think there’ll ever be any universal agreements between countries on corporate taxation such as the OECD and the G20 are presently calling for because it would deprive nation-states of their intrinsic competitiveness.  On the other hand, tensions between countries are already becoming a little too fraught and when rates become low enough I think that corporate taxes will simply be given up entirely.  There are other ways by which governments can compete against one another in their ability to attract multinationals without becoming too confrontational — for example, funding appropriate educational and scientific research projects.

I think that Google’s recent payment of £130 million was nothing to do with back-payment of corporate taxation. I don’t think Google itself has said that it was — it’s only George Osborne who’s characterised it this way for his own particular political purposes (leadership of the Tory Party after Cameron).  I think it was probably a thank-you for the help that the Government has already been to Google’s driverless car scheme. Further Government investments of £20 million into eight new projects involving autonomous vehicles on 40 miles of roads and motorways have just been announced in the last few days

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