Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what plans he has to allocate additional resources to HMRC to support the investigation of multinational companies that report profits in other countries to reduce the amount of tax they are required to pay in the UK.

The Government continues to take significant steps, domestically and internationally, to ensure multinationals pay the right amount of tax on their activities in the UK.

Through shared G20 and OECD initiatives to tackle Base Erosion and Profit Shifting, the UK remains at the forefront of multilateral action, reforming tax standards to realign taxation of profits with economic activities taking place across borders.

In order to further combat profit-shifting by multinationals, the Government introduced the Diverted Profits Tax in 2015, the Corporate Interest Restriction in 2017 and the charge on Offshore Receipts in respect of Intangible Property in 2019.

The Government has made significant investment to ensure non-compliance is tackled in all its forms. At Budget 2020, the Treasury provided HMRC with £63 million of additional funding in 2020-21 to tackle non-compliance, which is forecast to generate £4.7 billion of additional tax revenue over the next five years.