Multinational Companies: Taxation

(asked on 10th June 2021) - View Source

Question to the HM Treasury:

To ask Her Majesty's Government, further to the recent G7 global taxation agreement, what plans they have to require (1) public country-by-country reporting for UK based multinationals, and (2) enhanced tax reporting, to increase transparency and better ascertain the tax liabilities of UK multinationals.


Answered by
 Portrait
Lord Agnew of Oulton
This question was answered on 23rd June 2021

The Government is delighted to have secured G7 backing for the two-pillar solution being developed by the OECD to reform the international tax framework and the Government’s focus is on reaching final agreement with the G20 and OECD Inclusive Framework. A final agreement, when implemented, would help deal with the root of concerns about the taxation of multinationals, both as to where these corporations are taxed and as to the level at which they pay tax.

As part of the Finance Act 2016, large corporations and multinational enterprises are already required to publish a tax strategy document, which outlines the company’s attitude towards tax planning and its approach towards its dealings with HMRC.

The Government has also led on implementing international standards in tax transparency, including the Common Reporting Standard and Country-by-Country Reporting, which ensure tax authorities have the information they need to identify and challenge avoidance.

The Government considers that public country-by-country reporting needs to be implemented on a broad multilateral basis with wide international support if it is to be effective. Implementing it without wide international support would distort decisions on where companies decide to locate.

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