Global Minimum Corporate Tax Rate

Lord Collins of Highbury Excerpts

Wednesday 14th April 2021 Lords Chamber

[Lord Agnew of Oulton (Con)]

My Lords, we did not plan to increase corporation tax in the way we have had to do in the last few months. It is only as a result of the appalling crisis we have suffered through Covid and having to address the financial impact of that. I agree with my noble friend that lower corporation tax rates are broadly a good thing. Personally, I do not like to see tax on productive activity, employment or any of the things that make a country prosperous. Therefore, I support his comments that we should always aspire to lower tax rates, particularly on corporation tax. We will try to set it still at a competitive rate, so the US, Canada, Korea, Japan and Germany will all have higher rates than the one to which we are moving.

[Lord Collins of Highbury (Lab)]

My Lords, the UN high-level panel published its final report on the impact of financial integrity on sustainable development. The panel called for a UN tax convention and a UN body for international tax rules. The report also includes proposals for the automatic exchange of information, beneficial ownership transparency and country-by-country reporting. Do the Government support the high-level panel’s conclusions, and will we address this issue at the G7?

[Lord Agnew of Oulton (Con)]

My Lords, the Government do support increased transparency, and we have done a great deal over the last five years to improve on that, but I accept there is more to do.