Asked by: Austin Mitchell (Labour - Great Grimsby)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will request the EU's inspection teams to provide details of all preferential tax deals between (a) Luxembourg, (b) the Netherlands and (c) Ireland and multinational corporations which trade in the UK.
Answered by David Gauke
The European Commission has a duty of confidentiality to Member States in relation to the information they provide to the Commission. Where appropriate, HMRC can request information relevant to UK tax matters directly from the fiscal authorities in Member States under existing arrangements for the exchange of information.
Asked by: Austin Mitchell (Labour - Great Grimsby)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what representations he has made to the government of Luxembourg about that country's tax agreements with multinational corporations who trade in the UK.
Answered by David Gauke
The Treasury does not comment on confidential inquiries relating to the tax decisions of other Member States. The nature of State aid investigations is that they examine the specific circumstances in each case. It is therefore for each Member State to provide their own evidence to the European Commission. More widely, the UK is playing a leading role in reform of the international tax rules to ensure that companies pay their fair share, including in discussions in ECOFIN, the OECD and other international fora.
Asked by: Austin Mitchell (Labour - Great Grimsby)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what evidence he has given to the EU inquiry into the extent and means of tax avoidance by multinational corporations through Luxembourg and Ireland.
Answered by David Gauke
The Treasury does not comment on confidential inquiries relating to the tax decisions of other Member States. The nature of State aid investigations is that they examine the specific circumstances in each case. It is therefore for each Member State to provide their own evidence to the European Commission. More widely, the UK is playing a leading role in reform of the international tax rules to ensure that companies pay their fair share, including in discussions in ECOFIN, the OECD and other international fora.
Asked by: Austin Mitchell (Labour - Great Grimsby)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how many contracts signed by his Department with suppliers of services or consultants include a clause providing that if the contract is abrogated by the Government, the provider or consultant will be compensated for lost income since 2010.
Answered by Andrea Leadsom
Since January 2011, central Government Departments have been required to publish on Contracts Finder information on the tenders issued and contracts they award with a value over £10,000
In addition, Departments including HM Treasury routinely publish details of transactions over £25,000.
Information relating to the number of contracts that include a clause providing that if the contract is abrogated by the Government, the provider or consultant will be compensated for lost income, is not held centrally.
Asked by: Austin Mitchell (Labour - Great Grimsby)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what requirement there is for EU member states to exchange information on tax agreements between them and international companies.
Answered by David Gauke
A Member State should exchange information about a tax agreement it has made with an international company when the Member State considers that the tax agreement may result in a loss of tax in another Member State.
This requirement is set out in the EU Council Directive 2011/16/EU on administrative cooperation in the field of taxation.
There is no legal basis to exchange information where a Member State reaches a legal agreement with an international company on a purely domestic matter that could never directly affect the tax base of another Member State.
Asked by: Austin Mitchell (Labour - Great Grimsby)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will bring forward legislative proposals to make personal debt charged at an APR of over 30 per cent unrecoverable; and if he will make a statement.
Answered by Andrea Leadsom
The Government legislated in the Banking Reform Act 2013 to require the Financial Conduct Authority (FCA) to introduce a cap on the cost of high-cost short-term credit, including payday loans, in order to protect consumers from excessive costs. In designing the cap, the FCA will take into account the interest rate and other fees and charges which may be incurred in relation to a high-cost loan.
As part of the FCA's powers to cap the cost of credit in the Financial Services Act 2012, the Government gave the FCA specific powers to prevent a lender enforcing a credit agreement and recovering the debt, if the agreement contravenes its rules on the cost of credit. It can also require that any money or property transferred under the credit agreement must be returned.
The FCA is currently conducting analysis to inform the design of the cap; it has committed to publishing its proposed rules which implement the cap in July. The FCA plans to publish final rules in the autumn and all lenders must be compliant with the cap by 2 January 2015. The Government supports the FCA's proposed timetable for implementing the cap: it allows the FCA appropriate time to conduct analysis, consult on its proposals and ensure that firms are fully compliant by January. It also allows the FCA to draw on the insight of the Competition and Markets Authority's study into payday lenders in designing the cap.
Asked by: Austin Mitchell (Labour - Great Grimsby)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will bring forward proposals to limit the interest rate payable on payday loans; and if he will make a statement.
Answered by Andrea Leadsom
The Government legislated in the Banking Reform Act 2013 to require the Financial Conduct Authority (FCA) to introduce a cap on the cost of high-cost short-term credit, including payday loans, in order to protect consumers from excessive costs. In designing the cap, the FCA will take into account the interest rate and other fees and charges which may be incurred in relation to a high-cost loan.
As part of the FCA's powers to cap the cost of credit in the Financial Services Act 2012, the Government gave the FCA specific powers to prevent a lender enforcing a credit agreement and recovering the debt, if the agreement contravenes its rules on the cost of credit. It can also require that any money or property transferred under the credit agreement must be returned.
The FCA is currently conducting analysis to inform the design of the cap; it has committed to publishing its proposed rules which implement the cap in July. The FCA plans to publish final rules in the autumn and all lenders must be compliant with the cap by 2 January 2015. The Government supports the FCA's proposed timetable for implementing the cap: it allows the FCA appropriate time to conduct analysis, consult on its proposals and ensure that firms are fully compliant by January. It also allows the FCA to draw on the insight of the Competition and Markets Authority's study into payday lenders in designing the cap.