Multinational Companies: Tax Avoidance

(asked on 8th February 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make a root-and-branch assessment of the implications of the business models of large internet companies for his policies on state aid and tax avoidance.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 11th February 2021

Ensuring an effective solution to the challenges related to the taxation of the digital economy is a priority for the Government. In April 2020, the Government introduced a Digital Services Tax which ensures digital businesses pay UK tax that reflects the value they derive from UK users. The Government is also strongly supportive of OECD negotiations which seek to come to a global consensus agreement on the taxation of the digital economy.

Regarding subsidy control, following the end of the transition period, the UK also has the freedom to design a new domestic regime. The Secretary of State for Business, Energy and Industrial Strategy recently published a consultation seeking views on the approach the Government should take.

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