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The below Parliamentary question was asked by Roger Godsiff on 2016-03-11.

To ask Mr Chancellor of the Exchequer, if he will make an assessment of the effect of UK policies on tax and overseas territories on the effectiveness of Government steps to tackle global poverty.

Mr David Gauke

The Government is committed to tackling global poverty and to a fair and transparent global tax system.

Following the lead taken by the UK in its G8 Presidency, each of the UK’s Overseas Territories with a recognised financial centre has committed to automatic exchange of information with over 90 jurisdictions worldwide. The Territories have also joined the Multilateral Convention on Mutual Administrative Assistance in Tax Matters providing a legal gateway for exchange of information with a large number of countries, including developing countries which have joined the Convention.

The Government wants all countries, including developing countries, to be able to take advantage of exchange of information, both on request and automatically. The Department for International Development (DFID) funds the Global Forum and World Bank to support developing countries in implementing exchange of information systems, and last year the Government announced a partnership with the Ghana revenue authority to pilot the new standard on automatic exchange of information.

The UK has also been at the forefront of recent international efforts to align the taxation of profits with economic activity through the G20-OECD Base Erosion and Profit Shifting (BEPS) project. This project, which involved tax officials from over 120 countries, represents the most comprehensive attempt to reform the international tax rules since they were first drafted in the 1920s. All countries will be able to benefit from these changes to the international tax system, but some will require additional support if they are to do so. International organisations are therefore producing practical toolkits to help developing countries implement BEPS standards and DFID is funding international organisations to assist developing countries in obtaining technical assistance on issues such as transfer pricing.

The below Parliamentary question was asked by Roger Godsiff on 2016-03-11.

To ask Mr Chancellor of the Exchequer, if he will make an assessment of the implications for his policies on making country-by-country tax reports public of the survey results published by Christian Aid in September 2015 on the attitudes of FTSE100 companies to that issue.

Mr David Gauke

The UK supports efforts to improve tax transparency. We initiated the international work on country-by-country (CbC) reporting to tax authorities during our G8 Presidency in 2013, calling on the OECD to develop a template for this as part of the BEPS project.

The UK was also the first to commit to implementing the OECD model with legislation in Finance Act 2015. We signed the OECD agreement to share the CbC reports with other tax authorities in January 2016 and issued our final CbC reporting regulations on 26 February 2016.

The Government believes that there is scope for greater transparency by pressing the case for public CbC reporting on a multilateral basis. As the Chancellor has said, this is something that the UK will seek to promote internationally.

The European Commission is preparing an impact assessment of public CbC reporting. We look forward to seeing the outcome of this analysis, which we expect to be published early next month, and will consider any proposal put forward by the Commission in due course.

The below Parliamentary question was asked by Roger Godsiff on 2016-03-11.

To ask Mr Chancellor of the Exchequer, if he will make an assessment of the implications for his policies on corporate taxation of the OECD’s report, Countering harmful tax practices more effectively, taking into account transparency and substance, published in September 2014.

Mr David Gauke

The OECD report published in September 2014 formed the basis of international discussions in the OECD Forum on Harmful Tax Practices, which lead to the publishing of the 2015 FHTP Report, chapter 4 of which creates a new international framework governing preferential intellectual property (“IP”) regimes, such as the UK Patent Box.

This international framework makes the lower tax rates of preferential IP regimes dependent on, and proportional to, the research and development expenditure incurred by the claimant taxpayer in developing their IP. The UK Patent Box will be amended in line with this international framework, with the new rules coming into force on 1 July 2016.

The Report also made provision for greater information exchange between tax authorities of rulings issued to individual businesses. HM Revenue and Customs is currently implementing these rules and has already begun to exchange information with other tax authorities.