Oral Answers to Questions

Fiona Mactaggart Excerpts

Tuesday 12th March 2013 Commons Chamber

[Fiona Mactaggart (Slough) (Lab)]

8. What plans he has to increase corporation tax payments in the UK by large multinational companies; and if he will make a statement.

[Tim Loughton (East Worthing and Shoreham) (Con)]

13. What steps he is taking to ensure that international companies pay the appropriate levels of tax on revenues earned in the UK.

[The Exchequer Secretary to the Treasury (Mr David Gauke)]

The Government are determined to ensure that multinational companies pay their fair share of tax. The UK is committed to taking multilateral action through the G20 and the OECD to tackle the issues of profit-shifting by multinationals and erosion of the corporate tax base. The OECD presented its initial report on addressing these issues at the G20 meeting in Moscow last month and will present a comprehensive action plan to tackle them at the G20 in July this year.

[Fiona Mactaggart]

Even if the OECD produces a decent action plan, nothing will happen before September, yet Britain is responsible for some of the biggest tax havens in the world: Barbados, Bermuda and the British Virgin Islands received more foreign direct investment than Germany and Japan in 2010. When did the Minister last talk to the Foreign Secretary about what he could do about these tax havens?

[Mr Gauke]

It is worth pointing out that these places are not simply colonies in which we can direct orders; they have a degree of independence. We are working with other countries at the G20 and the G8 and through the OECD to ensure that we have a modernised tax system, which includes addressing jurisdictions where there is a lack of transparency.