Write 5 pages thesis on the topic multinational corporations that operate in the uk should pay more taxes in the uk.

Write 5 pages thesis on the topic multinational corporations that operate in the uk should pay more taxes in the uk. &nbsp.Based on the Honey and Mumford learning styles theory, evidence will put forward to support this stance.

The United Kingdom, just like many other countries, is exploring ways of attracting foreign direct investment. One of the ways this can be achieved is through the reduction of the corporation tax rate for the MNCs. Evidence from other countries suggests that having a competitive tax regime is important in attracting foreign investments to a given country. Daniela Pîrvu and Martina Eckardt (n.d) note that multinational corporations want to establish in regions or countries where they will yield higher after-tax profits. This means that when such corporations are heavily taxed, their after profits reduce, and this discourages foreign investments. For instance, between 2003 and 2006, Bulgaria and Romania attracted average foreign direct investments of 15% and 8%, with income tax rates of about 15 % and 16% respectively. On the other hand, Slovakia’s foreign direct investment volumes average 6% within the same period, at a tax rate of 17.5% (United Nations Conference on Trade and Development (UNCTD), 2008 p. 346). High taxes increase the capital use costs and reduce the ability of the company to make further investments since the profits are reduced (Desai, et al, 2006, p. 18). Clearly, when a country imposes a high tax rate for multinationals, it becomes unattractive to foreign investments. This in turn reduces overall GDP earnings, and this slows the growth of the economy.

There is evidence to show that multinational corporations are willing to invest in the United Kingdom as a result of competitive tax rates. In the UK, a number of tax reforms gave been&nbsp.undertaken with the aim of reducing these taxes. In 2010, the Corporate Tax Road Map was published, which clearly showed the approach the UK will take towards tax reforms. &nbsp.One of the principals in this reform is a lower corporate tax rate (HM Governement, 2013, p. 3).&nbsp.