Oral Answers to Questions

Nick Smith Excerpts

Wednesday 17th December 2014 Commons Chamber

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

2. What estimate she has made of the loss of tax receipts to developing countries by the use of tax havens by multinational companies operating in those countries in the last three years.

[Nick Smith (Blaenau Gwent) (Lab)]

4. What estimate she has made of the loss of tax receipts to developing countries by the use of tax havens by multinational companies operating in those countries in the last three years.

[Andy Sawford (Corby) (Lab/Co-op)]

6. What estimate she has made of the loss of tax receipts to developing countries by the use of tax havens by multinational companies operating in those countries in the last three years.

--- Later in debate ---

[Justine Greening]

As the hon. Lady will be aware, one of the key objectives of the G8 presidency, which we had last year, was about tax transparency. I am really proud that our Government have led the way in tackling issues such as base erosion and profit shifting. Rules that have been in place since the 1920s need to be updated for today’s modern corporate world. We are making big steps on that and big steps on transparency and beneficial ownership, and we will continue to play our role, leading the international effort to improve the rules so that we can get the tax due in the countries where the work has taken place.

[Nick Smith]

May I press the Secretary of State on this? Does she not accept that the overseas territories and Crown dependencies must go beyond a promise to implement the G20 principles, and actually introduce public registers of beneficial ownership?

[Justine Greening]

The hon. Gentleman is talking about G20 progress that was instigated by this Government when we held the G8 presidency. I am tempted to make the point that the Labour Government had 13 years in which to take steps in this direction, and entirely failed to do so. We took some important steps during our G8 presidency, and, as he will know, that involved the overseas territories. We are not saying that we have gone all the way down the path, but we are starting to move down it for the first time, and I think that the hon. Gentleman should welcome that. I assure him that we will continue to work to ensure that we bring the rest of the international community with us.