The UK government is asking businesses to comment on its plans to reform the way that intellectual property is taxed.
In a discussion document released last week into its proposals to change the tax rules for controlled foreign companies (CFCs), the Treasury said that the present rules mean there is a risk that companies can avoid paying UK tax by artificially moving their intellectual property into a low tax jurisdiction.
It acknowledged that some businesses may move their IP for genuine reasons and that IP management can be a trading rather than an investment activity.
One of its proposals is to identify companies that it says carry on "sufficient IP management activity offshore" and exempt these companies from the CFC rules.
The consultation period ends on April 20.