Clause 219 - International agreements to improve tax compliance

Part of Finance Bill – in a Public Bill Committee am 12:45 pm ar 20 Mehefin 2013.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Catherine McKinnell Catherine McKinnell Shadow Minister (Treasury) 12:45, 20 Mehefin 2013

Indeed, it provides an opportunity and a platform for the Government to take a proper look at how we can make changes here in the UK that will protect not only our tax base but those of developing countries. Capacity-building measures, which we debated on clause 217, are obviously welcome and incredibly important. But on their own, they will not make that transformational impact on developing countries that is required. They certainly will not put an end to the indefensible situation that sees countries losing three times more in tax avoidance than they receive in aid.

Like all our amendments to the Bill, amendment 109 is eminently sensible. It urges the Government to consider the possibility or the impact of introducing the measures we have outlined. We do not believe that the work that the Government have done to date on this issue has  been sufficient. There is no justification for any member of the Committee to vote against as it clearly is in line with the Government’s stated aims and intentions.

New clause 6 proposes that the UK should push for

“co-ordinated action be taken at the earliest opportunity to prevent the abuse of transfer pricing arrangements by multi-national corporations and that early consideration should be given to a review of the current Transfer Pricing Guidelines”.

Given that it is an eminently sensible proposal, which is difficult to argue or vote against, I urge hon. Members to support it today.