Caroline Flint MP: Time for George Osborne to show leadership on country-by-country reporting
2 min read
Labour MP Caroline Flint says the time has come for the Government to "show some leadership" on country-by-country tax reporting, as she tables an amendment to the Finance Bill.
When French prosecutors launched a dawn raid of Google’s head office in Paris on 24th May, attention turned once again to the shadowy world of multinational businesses.
I have been preoccupied with this issue since February, when as a member of the Public Accounts Committee, we heard evidence from both HMRC and Google, about their now-infamous £130 million tax deal.
Regardless of the questions we asked, or how we probed the witnesses, due to the extreme secrecy and confidentiality that surrounds these settlements we could not say whether this deal represented a good deal for the taxpayer.
Putting the issue of criminality (suspected by the French authorities) aside; in most cases, the way that multinationals structure their finances to reduce their tax burden is perfectly legal. And that is the problem.
I, like many others, am now convinced that the best way to tackle this issue is through greater transparency.
That is why, with the backing of most members of the Public Accounts Committee, two former PAC chairs and MPs from nine different parties, I have tabled an amendment to the Finance Bill, to introduce public country-by-country reporting.
By asking big multinational businesses to publish headline information about the money they make and where they pay taxes – information they already have to provide to HMRC – we can shine a light on these activities.
After the Google tax affair and the release of the Panama Papers, the tide of opinion is moving towards more openness. According to the Chancellor himself, the Government is in favour of public country-by-country reporting, though would prefer to wait to introduce measures multilaterally. But I think it’s time we showed some leadership on this issue, rather than just talking the talk.
Outside of Westminster the amendment has won backing from the private business-led Fair Tax Mark, from campaign groups Tax Justice Network and Global Witness, and from development organisations including Oxfam, ActionAid, Christian Aid, Save the Children and CAFOD. Charities say that developing countries lose more in taxes unpaid by big business every year than they receive in aid.
I hope that over the next few weeks we can build a broad coalition of support for what is a simple, yet significant, common-sense measure. The case is compelling. I hope together we can move the Government to agree.
Caroline Flint is the Labour MP for Don Valley
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