Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effectiveness of HMRC’s Large Business Directorate since its establishment in the context of his Department's 2014 strategy on Tackling aggressive tax planning in the global economy; and if he will make a statement.
The UK has been at the forefront of the Base Erosion and Profit Shifting (BEPS) project, which aims to curb international tax avoidance and reduce tax lost, including introducing the Diverted Profits Tax (DPT).
As at 31 March 2020, HMRC had secured over £6 billion of additional tax revenues through the impact of DPT rules, and had a further 100 investigations under way into multinationals’ arrangements considered to divert profits out of the UK, with a total amount of tax under consideration of £5.3bn.
In the March 2021 Budget, the Chancellor announced a review of tax administration for large businesses, in order to examine large businesses' experience of UK tax administration and explore improvements including for tax compliance.