Oral Answers to Questions

Jo Swinson Excerpts

Tuesday 11th September 2018 Commons Chamber

[Mr Speaker]

I hope the House will join me in welcoming the hon. Member for East Dunbartonshire (Jo Swinson) back from her maternity leave.

[Jo Swinson (East Dunbartonshire) (LD)]

10. What steps he is taking to ensure that large international technology companies pay an appropriate level of tax in the UK.

[The Financial Secretary to the Treasury (Mel Stride)]

Mr Speaker, I echo your welcome to the hon. Lady. It is good to see her in her place. It is absolutely right that all companies in this country should pay a fair rate of tax. The Government recognise that for some businesses—typically online companies—the current international tax regime is not entirely appropriate. We are working with the OECD and the European Union to find a solution to that, and we have made it clear that in the event we cannot reach a position where we can move multilaterally, we will take unilateral action.

[Jo Swinson]

I thank the Minister for that answer. The fact that Amazon’s UK profits trebled, yet it ended up paying less tax, shows how the tax model is broken for large international tech companies. He said that the UK may act unilaterally if international progress is not made at sufficient pace. With the OECD report not expected until 2020, is he prepared to wait that long before starting to act? Does he anticipate perhaps joining in with our European Union allies on the 3% interim revenue tax before then?

[Mel Stride]

We are not only working with the European Union; we are also working closely with the OECD. At our persuasion, it has recently decided to bring forward that report to 2019. We are making progress at the multilateral level, but as I have clearly stated, we should all be in no doubt that we are prepared to take unilateral action, should that be appropriate.