Oral Answers to Questions

Priti Patel Excerpts

Tuesday 7th February 2023 Commons Chamber

[Priti Patel (Witham) (Con)]

T2. I noted the Financial Secretary’s earlier comments about the implementation of the OECD’s global minimum corporation tax, but can she or the Chancellor provide some kind of clarity over the plans for the dispute resolution mechanism under pillar two and, importantly, say something about the assurances that will be given to businesses that will be affected by it in the next financial year?

[The Financial Secretary to the Treasury (Victoria Atkins)]

I thank my right hon. Friend for her question. The pillar two rules mean that large companies—these are defined as businesses with revenues of €750 million or more—are subject to a top-up tax if the profits that they make are not subject to at least a 15% tax. The reason that the international community is coming together to draw up these rules is precisely to do with the new shape that all our economies are taking, with international businesses spreading out around the world. We are trying to find a way to ensure that those very profitable businesses pay their fair share of tax.