Sue Hayman – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Sue Hayman on 2016-01-12.

To ask Mr Chancellor of the Exchequer, what progress his Department has made on reducing levels of tax avoidance by large corporations; and if he will make a statement.

Mr David Gauke

The UK initiated the G20/OECD Base Erosion and Profit Shifting project and has already taken action to implement two of the internationally agreed outputs with domestic legislation to introduce country-by-reporting and rules to address hybrid mismatches.

In addition, the UK played a key role in securing the successful EU agreement on automatically exchanging information on tax rulings, reached at the ECOFIN Council in October 2015.

Complementary to international efforts to tackle this issue, we introduced the Diverted Profits Tax from April 2015 to counteract the diversion of profits from the UK by large multinational enterprises.

In the summer Budget 2015 we legislated to improve the effectiveness of our Controlled Foreign Company (CFC) regime by removing the ability for companies to use UK losses and reliefs against their CFC charge.