Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to help prevent UK businesses from avoiding paying tax through profit fragmentation.

Last year HMRC secured and protected over £30 billion by clamping down on tax avoidance, evasion and non-compliance.

This has been possible, in part, as a result of HMRC’s work on the OECD-led Base Erosion and Profit Shifting project, and the successful introduction of new rules such as the Diverted Profits Tax.

This Government announced a new package of measures at Budget 2018 that further strengthen the existing rules. This package included a specific measure aimed at tackling tax avoidance involving the fragmentation of UK business profits. These Profit Fragmentation rules ensure that the amount of business profits that should be taxable in the UK are fully-taxed in the UK.