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EU Confident in Ability to Hit Back if U.K. Tax Standards Drop

Jan. 26, 2021, 5:28 PM

The European Union will continue to monitor for aggressive tax competition from the U.K., although there are likely enough safeguards in an existing trade agreement, speakers at a European Parliament hearing said.

The European Commission, the EU’s executive, will remain “extremely vigilant” in case the U.K. decides to become a low-tax “Singapore-on-Thames,” said Benjamin Angel, the commission’s director for direct taxation, speaking at the hearing organized by the parliament’s tax subcommittee Tuesday. A former U.K. finance minister said in 2017 that the U.K. might pursue a low-tax strategy, but this was now seen as “political rhetoric,” Angel said.

The ...