G8

Geraint Davies Excerpts

Wednesday 19th June 2013 Commons Chamber

[The Prime Minister]

My hon. Friend is absolutely right. This requires action by Governments and countries across the board, including traditionally quite free trade countries such as Germany that have sometimes had quite a lot of restrictions around particular professions. We therefore need action in the EU and then between the EU and the US in order to capture the full benefits of these changes.

[Geraint Davies (Swansea West) (Lab/Co-op)]

On the sharing of tax information, was there agreement in principle that multinationals should pay their tax where they make their profits and if so, when will that happen, given that there will be winners and losers, with different countries resisting?

[The Prime Minister]

The key point in the Lough Erne declaration is that we should stop companies trying to artificially shift profits from one jurisdiction to another. I believe in fair tax competition. I am a low-tax Conservative: I think it is right to have low tax and then to ask companies to pay that tax. I think what is unacceptable is when processes and procedures are gone into not to shift the activity—that is a company’s right—but to shift where companies are trying to take the profits. That is the point.