24/05/21

UK: Labour to force Commons vote on global tax for online tech giants.

As published on dailyrecord.co.uk, Monday 24 May, 2021.

Labour is to stage a Commons vote to try and force the Government to back the global minimum rate of corporation tax being proposed by President Biden at the upcoming G7 summit.

Britain is now the only country to not back the plan, with Germany, France, Canada, Italy and Japan backing Biden’s proposal.

Tax Justice UK estimate a 21 per ent global minimum rate, initially proposed by President Biden, would bring in about £13.5 billion a year in extra tax benefitting Britain.

Labour has tabled an amendment to the Finance Bill on Monday to force the Government to back the plan to make global tech gians like Apple and Amazon pay a larger share of tax on their profits.

Rachel Reeves MP, the Shadow Chancellor of the Exchequer, said the pact marked a once in a generation opportunity to stop huge multinationals avoiding British tax and undercutting British businesses, as well as arresting the global race to the bottom on corporate taxation.

Reeves said: “The Conservatives have a choice: they can join Labour in tackling large-scale tax avoidance or they can allow billions of pounds to leave Britain.

“By making sure they pay their fair share in Britain, we can level the playing field for our brilliant businesses, and build an economic recovery with thriving industries, strong public services and good, secure jobs for all.”

Labour pointed to how tech giants and large multinationals have avoided paying billions of pounds in tax every year that could be invested in British public services and industry.

The global rate being planned is lower than the UK’s own corporation tax but reluctance to tackle offshore banking in UK Overseas Dependancies is being sited as the reason for the government’s reluctance to back the idea.