Chloe Smith says Time’s up for Tax Avoiders

Chloe Smith, MP for Norwich North, is taking part in a House of Commons debate on tax avoidance and multi-national companies.

Commenting on the issue Chloe said:

“I welcome the measures which have been put in place to ensure big companies pay their fair share here in the UK. The diverted profits tax means Google and other companies will pay more tax in future. In fact they will pay more tax than they ever paid under Labour, when the tax rate for Google was 0 per cent.

“We need a tax system which is internationally competitive, but also to make sure those taxes are paid.  When we came to power in 2010 banks did not pay tax on all their profits, investment companies could cut their tax bill by flipping the currency their accounts were in, companies could fiddle accounting rules to make losses appear out of thin air. All of this was allowed under Labour but is being stopped by this Government.

"People in Norwich are understandably angry when individuals or companies are perceived not to be paying their fair share, so I am representing that concern in Parliament and looking for sustained tough action."

The diverted profits tax works by preventing companies from creating tax advantages by using transactions or entities which lack economic substance. The goal is to counteract contrived arrangements used by large groups (typically multinational enterprises) which erode the UK tax base.

The Government has repeatedly changed the tax laws to crack down on foul play, thereby securing an extra £100 billion in the last Parliament. Yield from compliance activity - dealing with aggressive tax avoidance, evasion and fraud - rose to a record £26.6 billion in 2014/15, including £7.3 billion from the 2,000 largest and most complex businesses in the UK.