MPs accuse ministers of 'facing both ways' on tax avoidance

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).

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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."