MPs accuse David Cameron of helping big firms such as Google to avoid paying tax
Dame Margaret Hodge has called on the Treasury to 'take action' and 'put an end to tax secrecy' after years of trouble
DAVID Cameron is accused of helping big firms dodge tax in a hard-hitting report by MPs today.
A cross-party parliamentary group said his Government had “faced both ways” during worldwide efforts to tackle tax avoidance by multinational firms such as Google.
The report described Britain as a “difficult friend” of a global drive to tackle tax dodging while publicly pledging to crack down on the practice.
MPs said ministers ended up secretly “encouraging” global tax avoidance and “undermined” efforts to tackle it “behind closed doors”.
The All Party Parliamentary Group also slammed the international drive to rein in tax avoidance as a “sticking plaster”.
Group chair Dame Margaret Hodge called on the Treasury to take action.
She said the Government’s failure to make overseas territories and crown dependencies that were tax havens publish company ownership registers was “frustrating”.
She said: “The Government has been facing both ways.
“While publicly proclaiming their determination to tackle global tax avoidance, they have been encouraging these practices by changes they have made to the UK tax system and by refusing privately to agree to some key OECD proposals.”
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She added: “Their unwillingness to get tough on our overseas territories and crown dependencies, home to a number of tax havens, by forcing them to introduce public registers of beneficial ownership is frustrating.
“The new Prime Minister must put an end to tax secrecy.
“The UK Government should take a leading role and introduce public country-by-country reporting.
“The UK Government should use the law to end the secrecy that encompasses tax havens and should work internationally to create rules that are sustainable and that ensure tax is properly paid where value is actually added.”
Charities including ActionAid, Oxfam and Christian Aid called on Prime Minister Theresa May to take action.
ActionAid boss Barry Johnston said: “This September’s G20 meeting in China - May’s first major summit as PM - provides the perfect opportunity for her to show she means business.”
Last night Treasury spokesman claimed the Government has “led a transformation” in global tax transparency.
He said: “Because of our leadership HMRC will be begin receiving information on the accounts held in the crown dependencies and overseas territories by UK taxpayers one year earlier than the rest of the world.”