There was a debate in the Commons yesterday on Google's tax affairs and what can be done to improve tax collection from multinational corporations.
I've read it. I have exchanged opinion on Twitter with Christopher Philps MP who seriously misrepresented what I said at the Treasury Committee on Tuesday. I'm grateful to others who quoted me appropriately.
But what really interested me about the debate was that Labour unambiguously supported the case for country-by-country reporting. And despite the claim made only days ago that George Osborne was in favour of public country-by-country reporting not a single Conservative said that, and nor did the government amendment to labour's motion, which was passed. On this issue that amendment said:
[T]he Government recognises the case for publishing country-by-country reports on a multilateral basis
So that, then, is a commitment to country-by-country reporting if everyone who objects to it agrees to change their mind. That's no commitment at all in other words: that's just noise that is meant to suggest one thing (support) whilst actually doing the opposite (standing on the side lines waiting for nothing to happen).
If this government is committed to holding multinational corporations to account it should say so.
Right now its actions speak loudest and they make clear that it really has no intention of making multinational corporations account on a country-by-country reporting basis.
That's a sorry day for us all. I look forward to a change of heart.
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Hi Richard,
We can expect to see opportunities to introduce public country by country reporting across the EU in the coming year. The European Parliament has already voted in favour. Given recent statements (including yesterdays amendment) it seems reasonable to expect that the UK will now take a clear position in favour of such proposals. Let us see…
More weasel words from the Tories, you can’t trust what they say!
Their actions are seriously lacking in this area, and it’s no good them blaming decisions taken in the distant past because they have been in Government since 2010 so have had plenty of opportunity to change things if they wished (which they clearly do not!)
You have to admire the grandmaster level skills at using words to mislead without actually lying.
This was a good debate and while the fat lady keeps singing about the necessary changes required to the UK and international laws, I think it is important to remember one very important fact.
It is a matter of choice that multinational companies, their tax advisers, bankers and accountants consider, decide and agree to structure their affairs in order to minimise their tax obligations and other liabilities to countries around the world.
And so it is at heart a moral issue. It is therefore correct that the British public (and all other nations) continue to question the personal integrity and morality of the people who make these decisions, just as much if nor more so than it is the specific legal or accounting issues.
Because one thing you can be certain of is that no matter what new laws or accounting standards are introduced, those people with no moral integrity or social conscience who run such organisations will continue to seek ways to achieve the same ends.
Sociopaths and psychopaths do not change their behavior because the laws relating to their regulation and punishment are altered. Such people should no longer be allowed into positions where they can inflict harm on others.
A morally corrupt culture and psychology, especially in large financially driven organisations, lies at the real heart of the problem in my opinion.
So it turns out it wasn’t even £130m of corporation tax after all!
This so called “great victory” just keeps looking more like a total failure.
http://www.theguardian.com/technology/2016/feb/04/google-uk-tax-deal-share-options-scheme
http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2016-01-27/24621
Thanks Toby
Will blog that