Thank you for contacting me about corporations paying tax.
As I’m sure you will appreciate, I cannot comment on an individual company’s tax liabilities. However, I understand the way businesses work is changing, which is why I am encouraged that the Government is reviewing the taxation of the digital companies, to make sure all businesses pay their fair share. The UK government is leading international efforts to reform the international rules around where profit is made and where it should be taxed.
Pending global reform of the tax system, the Government is exploring potential interim measures, such as a tax on the revenue of certain digital businesses. Additionally, this country has led the way through tough new rules to crack down on multinationals shifting their profits to lower tax jurisdictions. Around £8 billion has been returned to HMRC by cracking down on large multinational enterprises that are avoiding paying the right amount of tax in the UK. The Diverted Profits Tax has been introduced at a rate of 25 per cent on multinationals that artificially divert profits out of the UK.
I appreciate there is more work to be done, but this country has made good progress in ensuring businesses pay their fair share and continues to lead international efforts to reform the international rules.
Thank you again for taking the time to contact me.