Oral Answers to Questions

Debate between Richard Bacon and David Gauke

Tuesday 5th June 2018 Commons Chamber

[Mr Gauke]

That is an important point, and we will publish our women offenders strategy in the near future. We must address reoffending by ensuring that when people are released they are settled in the community as successfully as possible.

[Mr Richard Bacon (South Norfolk) (Con)]

Prisoners who build their own houses and then rent them at an affordable rent are much less likely to reoffend. Will the Secretary of State meet me and members of the Right to Build Task Force to discuss how this excellent initiative can be spread more widely?

[Mr Gauke]

I congratulate my hon. Friend on managing to raise the issue of right to build in as many forums as possible, and I would be delighted to meet him to discuss the opportunities here.

Tax Avoidance and Multinational Companies

Debate between Richard Bacon and David Gauke

Wednesday 3rd February 2016 Commons Chamber

[Mr Gauke]

I will deal directly with the issue of transparency in a moment.

On the issue of how our international tax system works, I have explained that it is based on economic activity. However, I would be the first to say that that international tax system needs to be brought into the modern world. That is the very reason why the UK has led the way on the base erosion and profit-shifting process. We should also be aware that there are particular issues with the US tax system, which is failing to tax intellectual property developed in the US in the way that it should.

I gave the example of video games companies. However, I recognise that there are many cases that are much more complex, and where it is not so easy to identify where the economic activity takes place. There is an issue about where multinational companies allocate their profits and where they identify economic activity as taking place. There is a need to address that, which is why we need tax rules that genuinely reflect where economic activity takes place, to ensure that profits are aligned with it. However, that is a very different matter from making big claims about profits from sales and saying that those sales profits have to be taxed where the sales take place. That is the misunderstanding I wish to address.

[Mr Richard Bacon (South Norfolk) (Con)]

The Minister is right, of course, that these issues are sometimes very complicated. However, sometimes there are loopholes that are exploited. Will he identify some of the loopholes closed by this Government that were opened by the previous Labour Government?

[Mr Gauke]

There is a whole host I could draw attention to, but in the interests of time, I will not run through that lengthy list. I have it here, and there are quite a number of cases—there are 40 I can identify straightaway—where there were loopholes, and we have tried to address that.

The diverted profits tax—I will come back to this again in detail in a moment—is designed to ensure that, where companies divert their profits away from the UK, and where the economic activity is happening in the UK, we get some of the tax yield.