Multinationals’ tax

SIR – The proposal by the IPPR Commission on Economic Justice (Letters, September 7) for an “alternative minimum corporation tax” is targeted on companies that engage in “profit-shifting”. This is a practice that irresponsible multinationals engage in to disguise their true UK profits, that is, profits made from the sale of goods and services within the UK.

Can it really be claimed that Starbucks has been an exporter into the UK market rather than operating here? Our proposed measure is aimed at creating a level playing field with domestic businesses that cannot engage in this activity.

That will sharpen competition, improve efficiency, and ensure everyone pays their fair share. And, of course, the commission’s plan for income tax could see more than 80 per cent of taxpayers paying less than they pay today. I expect many Telegraph readers will think that this plan is fair. Tom Kibasi

Director, IPPR and Chairman, IPPR Commission on Economic Justice London WC2