G20

Mark Durkan Excerpts

Monday 17th November 2014 Commons Chamber

[The Prime Minister]

I am not aware of any, but I shall have to go away and look carefully at the point my hon. Friend makes. He has been making a series of extremely worthwhile interventions on this subject. For instance, we should ensure that we act consistently with partners at the UN to list and put sanctions on individuals, but the point he makes about ensuring that the people we sanction are also on travel bans is very good, and I will look into it and write to him.

[Mark Durkan (Foyle) (SDLP)]

Further to the Prime Minister’s point about the progress on corporate tax avoidance, he can acknowledge that many poor countries are unable to sign up for automatic exchange of information. Will his Government consider offering bilateral pilots to some of those countries, and will they also do a spill-over analysis, as requested by the OECD and carried out by the Irish and Dutch Governments, of the implications of the tax regime here for those poor countries? Would such an analysis consider the controlled foreign companies rules put in place by this Government, which are taking money away from poor Exchequers?

[The Prime Minister]

Where I would seek common cause with the hon. Gentleman is on the idea that poorer countries are often unable to take part in the tax exchange because they do not have the capacity to process the information and use it to raise funds. That is why initiatives such as tax inspectors without borders and putting resources into these countries to help with their tax regimes are important. I do not agree that what we have done to attract foreign companies is irresponsible. We charge our taxes properly, and it is good that some practices that were—let me put it this way—questionable, such as the so-called double Irish scheme, have been taken away. Low tax rates and the proper application of those tax rates are the prize we should be looking for.