1st Report: Tackling corporate tax avoidance in a global economy: is a new approach needed?

Summary written by Accountability Index from the government's response. It is not the government's own words.

The Government notes the Committee's recommendations for a new Treasury review of corporation tax but considers such a review "of limited value" given its existing work, which it says centres on competitiveness, tackling avoidance and reform of the international framework through the OECD.

• It agrees that the current international system needs reform and says the UK is "fully supportive of and closely engaged with" the OECD BEPS project, to which it says the UK has contributed a further €400,000.
• It disagrees with a separate Treasury review of interest relief and debt, saying the work forms part of the OECD BEPS Project. On an allowance for corporate equity, it says it "is reviewing the wider case" following the Parliamentary Commission on Banking Standards.
• It agrees with promoting the G8 information-sharing proposals but disagrees with public disclosure of tax returns, saying this would put the UK "at a competitive disadvantage" and "do nothing to aid our efforts to tackle tax avoidance".
• It disagrees with penalties under the GAAR "at this stage", citing a need for a "bedding-in period", but says it "has not ruled out future action" to attach penalties "if necessary".

Read the government's response ↗ Report an error