The UK has been a "difficult friend" to global efforts to prevent large corporations from avoiding tax, said a cross-party group of MPs.
Labour MP Dame Margaret Hodge, who chairs the all-party parliamentary group on responsible tax, said the government was "facing both ways" in its public rhetoric and private action.
Speaking at the launch of a report into attempts to tackle corporate tax avoidance, Hodge said the government, while "publicly proclaiming their determination to tackle global tax avoidance", have behind the scenes "pushed back" against reforms drawn up the Organisation of Economic Cooperation and Development (OECD).
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
She also criticised ministers for cutting the corporation tax rate to the lowest in the G7 and introducing complex tax relief on the likes of intellectual property, says the Daily Telegraph.
In addition, Hodge described as "frustrating" the government's failure to force its overseas territories, such the British Virgin Islands, to introduce public registers in order to boost transparency.
The cross-party group also proposed that multinationals such as Starbucks, Amazon and Google are forced to disclose where they generate revenues to enable tax officials to target policy initiatives effectively.
The report praised OECD's work over the past two years, which has culminated in new tax avoidance measures agreed by 60 countries, accounting for 90 per cent of the world economy.
However, it added, such efforts ultimately amount to little more than a "sticking plaster".
Toby Quantrill, from Christian Aid, said: "This report is a gift to the government of Theresa May, who has criticised multinational tax cheats. Her government must prove it takes this issue seriously by adopting the proposals in the report in full."
-
Four royal holiday hotspotsThe Week Recommends Follow in the footsteps of royalty and experience the charm of some of their most popular getaways
-
The rise of the lost luggage auctionIn the Spotlight Lost luggage hauls are attracting millions of views online
-
Stunning beaches in ScotlandThe Week Recommends Scenic spots that wouldn't look out of place in the Caribbean
-
Labour shortages: the ‘most urgent problem’ facing the UK economy right nowSpeed Read Britain is currently in the grip of an ‘employment crisis’
-
Will the energy war hurt Europe more than Russia?Speed Read European Commission proposes a total ban on Russian oil
-
Will Elon Musk manage to take over Twitter?Speed Read The world’s richest man has launched a hostile takeover bid worth $43bn
-
Shoppers urged not to buy into dodgy Black Friday dealsSpeed Read Consumer watchdog says better prices can be had on most of the so-called bargain offers
-
Ryanair: readying for departure from LondonSpeed Read Plans to delist Ryanair from the London Stock Exchange could spell ‘another blow’ to the ‘dwindling’ London market
-
Out of fashion: Asos ‘curse’ has struck againSpeed Read Share price tumbles following the departure of CEO Nick Beighton
-
Universal Music’s blockbuster listing: don’t stop me now…Speed Read Investors are betting heavily that the ‘boom in music streaming’, which has transformed Universal’s fortunes, ‘still has a long way to go’
-
EasyJet/Wizz: battle for air supremacySpeed Read ‘Wizz’s cheeky takeover bid will have come as a blow to the corporate ego’
