G20

Fiona O'Donnell Excerpts

Monday 17th November 2014 Commons Chamber

[The Prime Minister]

What we have said is that we want to maintain our ambition to have the lowest rate of business tax of the advanced industrial economies. We have achieved that under this Government through getting corporation tax down to 20% and I think that is a very good calling card for Britain in the world to get people to come and invest here. We have a 20% tax rate, but we do believe that it is important that companies pay their tax, so I think it is both a good advert for Britain, but also in the long term a good way of protecting and raising our revenue.

[Fiona O'Donnell (East Lothian) (Lab)]

I am sure the Prime Minister agrees that we should judge the success of greater transparency in global taxation by how much it benefits those who need it the most—the poorest countries in the world. He said in his statement that £37 billion of extra tax was being paid by big companies. Can he now tell the House how much of that money has gone to developing countries?

[The Prime Minister]

I do not have those figures for the hon. Lady. They were figures produced by the OECD at the meeting, but she is completely right that if all that happens is that the richest countries of the world agree to exchange tax information with each other, that will help us but it will not help the poorest. That is why we have to get into these countries and help them build their tax authorities and their capacity. That is why we have not just proposals but actions like tax inspectors without borders where we actually put the capacity into other countries. I want them to benefit from the good work that is being done.