Asked by: Danny Kinahan (Ulster Unionist Party - South Antrim)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will introduce legislative proposals to prevent UK tax rules allowing companies to avoid paying tax in developing countries.
Answered by David Gauke
The UK, like most countries, has a territorial tax system that focuses on taxing profits generate from economic activity in the UK. It is not possible to use the UK tax system to prevent companies from avoiding paying tax in other countries. Our corporate tax system is designed to protect the UK’s tax base, not those of other countries.
The key issue is ensuring that developing countries have the assistance required to develop their own rules to protect their tax bases. The UK has set up a specialist Tax Capacity Building Unit in HM Revenue and Customs (HMRC), which deploys HMRC staff to developing countries to provide technical expertise. Earlier this year, we committed to doubling our funding for tax projects in developing countries.
The UK is also at the forefront of global efforts to address tax avoidance by multinational companies through the OECD-G20 Base Erosion and Profit Shifting (BEPS) project. Over 60 countries have been involved in this work, including developing countries.
The BEPS project was completed on 5 October, and the focus is now on implementation. The UK is chairing a group of over 90 countries, including developing countries such as Zambia, who are working together to develop a multilateral instrument (MLI) to update the global network of tax treaties in line with the BEPS project outcomes. The MLI will help developing countries whose tax treaty negotiation expertise may be more limited than in governments of developed economies.
Asked by: Danny Kinahan (Ulster Unionist Party - South Antrim)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what recent steps his Department has taken to encourage the development of enterprise zones in Northern Ireland.
Answered by Greg Hands
In Northern Ireland, many of the benefits associated with Enterprise Zones are the devolved responsibility of the Northern Ireland Executive.
The 2013 economic pact, Building a Prosperous and United Community, indicated that the Government would consider designating a range of sites within any Northern Ireland Enterprise Zone as eligible for Enhanced Capital Allowances, which as part of the UK’s tax system remain a non-devolved responsibility.
In March 2014 the NI Executive indicated that it was considering creating a pilot Enterprise Zone near Coleraine. The Government remains open to examining the case for offering Enhanced Capital Allowances at that, or alternative, locations when proposals are brought forward by the Executive.
Budget 2014 announced that businesses located within the Executive’s proposed pilot Enterprise Zone near Coleraine will benefit from enhanced capital allowances until 2020. I understand the Executive continues to work towards the implementation of this pilot Enterprise Zone.
Asked by: Danny Kinahan (Ulster Unionist Party - South Antrim)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what steps he is taking to restore the cider differential.
Answered by Damian Hinds
The government recognises that small cider producers are a traditional part of rural economies and its support for small cider producers has helped create a diverse and vibrant market, improving consumer choice and creating jobs. To support the wider industry, at the March 2015 Budget the duty on lower strength cider was cut by 2 per cent.
Asked by: Danny Kinahan (Ulster Unionist Party - South Antrim)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what budget reductions he plans to the fire and rescue service.
Answered by Greg Hands
Funding for fire and rescue authorities, national resilience and other central programmes will be determined as part of the Spending Review.
Asked by: Danny Kinahan (Ulster Unionist Party - South Antrim)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, when his Department plans to publish the 2013 HM Revenue and Customs Equal Pay Audit; what the reasons are for the time taken to publish that audit; and if he will make a statement.
Answered by David Gauke
The 2013 HM Revenue and Customs (HMRC) Equal Pay Audit will be published by the autumn this year. The audit was scheduled for publication in April 2014, but this has been delayed due to a requirement to include additional statistical analysis.
Asked by: Danny Kinahan (Ulster Unionist Party - South Antrim)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what changes in the block grant to Northern Ireland will arise as a result of the Summer Budget 2015.
Answered by Greg Hands
The Barnett Formula was applied in the usual way to changes in departmental spending at Summer Budget 2015. As a result the Northern Ireland Executive will receive £3 million in additional allocations.