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The below Parliamentary question was asked by Danny Kinahan on 2015-10-27.

To ask Mr Chancellor of the Exchequer, what steps he is taking to restore the cider differential.

Damian Hinds

The government recognises that small cider producers are a traditional part of rural economies and its support for small cider producers has helped create a diverse and vibrant market, improving consumer choice and creating jobs. To support the wider industry, at the March 2015 Budget the duty on lower strength cider was cut by 2 per cent.

The below Parliamentary question was asked by Danny Kinahan on 2015-10-27.

To ask Mr Chancellor of the Exchequer, if he will investigate UK multinationals’ corporate tax practices in Zambia.

Mr David Gauke

Any investigation of UK multinationals’ corporate tax practices in Zambia would need to focus on, and require a full understanding of, the interaction between multinationals and the tax regime of Zambia. It would not be feasible or appropriate for the UK Government to undertake such an investigation.

The UK is supporting tax reform in Zambia. For example, the Department for International Development has funded the OECD and World Bank Group to provide technical assistance to Zambia to implement improvements in transfer pricing and related controls. More generally, the Government is committed to supporting developing countries access sustainable sources of revenue and collect the taxes they are due. The UK is a world leader on tax capacity building, contributing considerable human and financial resources to help developing countries to build robust tax administrations. And earlier this year we committed to doubling our funding for tax projects in developing countries.

The Government has also set up a specialist Tax Capacity Building Unit in HM Revenue and Customs (HMRC). At Autumn Statement 2014, the Chancellor announced that HMRC would recruit a new team of tax inspectors to work fulltime on tax capacity building, supporting HMRC’s Tax Capacity Building Unit and fulfilling missions such as the OECD’s Tax Inspectors Without Borders project.

The below Parliamentary question was asked by Danny Kinahan on 2015-10-27.

To ask Mr Chancellor of the Exchequer, what recent steps his Department has taken to encourage the development of enterprise zones in Northern Ireland.

Greg Hands

In Northern Ireland, many of the benefits associated with Enterprise Zones are the devolved responsibility of the Northern Ireland Executive.

The 2013 economic pact, Building a Prosperous and United Community, indicated that the Government would consider designating a range of sites within any Northern Ireland Enterprise Zone as eligible for Enhanced Capital Allowances, which as part of the UK’s tax system remain a non-devolved responsibility.

In March 2014 the NI Executive indicated that it was considering creating a pilot Enterprise Zone near Coleraine. The Government remains open to examining the case for offering Enhanced Capital Allowances at that, or alternative, locations when proposals are brought forward by the Executive.

Budget 2014 announced that businesses located within the Executive’s proposed pilot Enterprise Zone near Coleraine will benefit from enhanced capital allowances until 2020. I understand the Executive continues to work towards the implementation of this pilot Enterprise Zone.

The below Parliamentary question was asked by Danny Kinahan on 2015-10-27.

To ask Mr Chancellor of the Exchequer, if he will introduce legislative proposals to prevent UK tax rules allowing companies to avoid paying tax in developing countries.

Mr David Gauke

The UK, like most countries, has a territorial tax system that focuses on taxing profits generate from economic activity in the UK. It is not possible to use the UK tax system to prevent companies from avoiding paying tax in other countries. Our corporate tax system is designed to protect the UK’s tax base, not those of other countries.

The key issue is ensuring that developing countries have the assistance required to develop their own rules to protect their tax bases. The UK has set up a specialist Tax Capacity Building Unit in HM Revenue and Customs (HMRC), which deploys HMRC staff to developing countries to provide technical expertise. Earlier this year, we committed to doubling our funding for tax projects in developing countries.

The UK is also at the forefront of global efforts to address tax avoidance by multinational companies through the OECD-G20 Base Erosion and Profit Shifting (BEPS) project. Over 60 countries have been involved in this work, including developing countries.

The BEPS project was completed on 5 October, and the focus is now on implementation. The UK is chairing a group of over 90 countries, including developing countries such as Zambia, who are working together to develop a multilateral instrument (MLI) to update the global network of tax treaties in line with the BEPS project outcomes. The MLI will help developing countries whose tax treaty negotiation expertise may be more limited than in governments of developed economies.