Taxation: Avoidance and Evasion

Lord Crickhowell Excerpts

Tuesday 26th January 2016 Lords Chamber

[Lord Ashton of Hyde]

My Lords, it is a tricky question to determine between the different statements of the Prime Minister, the Chancellor and others. I am afraid I have not seen all their comments in context; I would need to see those before I am able to deliver my final judgment. Taxpayer confidentiality is a long-established principle and it is important that details of confidentiality are maintained, and that applies to everyone. What we want is fair payment of tax by everyone, be they large or small companies, or individuals.

[Lord Crickhowell (Con)]

My Lords, the small businesses of the town of Crickhowell have launched a campaign under the name Fair Tax Town because many of them are paying more corporation tax than the big international corporations. Despite what my noble friend has said about action being taken, many of them feel that that action is so far quite inadequate. Will my noble friend give me an assurance that a really determined effort will now be made by the Government to sort out this unacceptable situation?

[Lord Ashton of Hyde]

My noble friend is right that we expect all companies, large and small, to be treated equally and to pay the tax that is due. This Government have reduced corporation tax. The quid pro quo for that is that when it is due on taxable profits, it should be paid. We are also tackling this internationally, because with multinational companies it has to be taken worldwide. That is why we have led the efforts in the G20 on the base erosion and profit shifting project, and we are now leading the group of 94 countries in the OECD which are implementing that.