Roger Godsiff – 2016 Parliamentary Question to the HM Treasury
The below Parliamentary question was asked by Roger Godsiff on 2016-03-11.
To ask Mr Chancellor of the Exchequer, if he will make an assessment of the effect of UK policies on tax and overseas territories on the effectiveness of Government steps to tackle global poverty.
Mr David Gauke
The Government is committed to tackling global poverty and to a fair and transparent global tax system.
Following the lead taken by the UK in its G8 Presidency, each of the UK’s Overseas Territories with a recognised financial centre has committed to automatic exchange of information with over 90 jurisdictions worldwide. The Territories have also joined the Multilateral Convention on Mutual Administrative Assistance in Tax Matters providing a legal gateway for exchange of information with a large number of countries, including developing countries which have joined the Convention.
The Government wants all countries, including developing countries, to be able to take advantage of exchange of information, both on request and automatically. The Department for International Development (DFID) funds the Global Forum and World Bank to support developing countries in implementing exchange of information systems, and last year the Government announced a partnership with the Ghana revenue authority to pilot the new standard on automatic exchange of information.
The UK has also been at the forefront of recent international efforts to align the taxation of profits with economic activity through the G20-OECD Base Erosion and Profit Shifting (BEPS) project. This project, which involved tax officials from over 120 countries, represents the most comprehensive attempt to reform the international tax rules since they were first drafted in the 1920s. All countries will be able to benefit from these changes to the international tax system, but some will require additional support if they are to do so. International organisations are therefore producing practical toolkits to help developing countries implement BEPS standards and DFID is funding international organisations to assist developing countries in obtaining technical assistance on issues such as transfer pricing.
