Oral Answers to Questions

Mark Hunter Excerpts

Tuesday 4th November 2014 Commons Chamber

[Danny Alexander]

The Office for Budget Responsibility takes into account forecasts for EU payments in its own forecasts. It did so at the time of the Budget and will do so again at the time of the autumn statement. A demand of this size in this manner is simply not acceptable, and we are absolutely right to do everything that we can to deal with the issue. That is what we in the coalition will ensure happens.

[Mark Hunter (Cheadle) (LD)]

7. What recent steps he has taken to reduce tax avoidance.

[The Financial Secretary to the Treasury (Mr David Gauke)]

The Government have taken a wide range of actions to tackle tax avoidance over the Parliament, including introducing the UK’s first ever general anti-abuse rule. This year’s Finance Act introduced a tougher monitoring regime and penalties for promoters of high-risk tax avoidance schemes. We have also given HMRC the power to collect disputed tax bills up front. That removes the incentive for tax avoiders to delay and frustrate HMRC’s efforts to settle disputes and brings forward £4.3 billion in revenues.

[Mark Hunter]

I am aware that, as a result of measures taken by the coalition Government to crack down on tax avoidance, a record £24 billion in additional tax revenue was raised in the last financial year. Does my hon. Friend agree that much more remains to be done to make sure that multinationals such as Starbucks and Google pay their fair share?

[Mr Gauke]

My hon. Friend is right to highlight the record yield for the last financial year. Indeed, there are reasons to believe that that record may well be broken for this financial year. As for multinationals, I do not want to be drawn on individual companies, but it is right to say that we need to work internationally, as I mentioned earlier, through the OECD base erosion and profit shifting process. As my right hon. Friend the Chancellor made clear at the Conservative party conference, we are looking to take further action in respect of multinationals not paying the tax that they should.