Action will be taken at the G8 summit to make "a real difference" to the amount of tax paid by corporations, David Cameron says.
The PM told Sky News steps to improve sharing of information by countries and to reveal the true owners of companies "will lead to a fairer tax system".
Shadow business secretary Chuka Umunna said existing UK transparency rules were not being enforced.
The G8 summit will begin in County Fermanagh on Monday.
On Saturday, Mr Cameron met leaders of Britain's overseas territories and Crown dependencies and secured agreement from them to sign up to an international initiative against tax avoidance and evasion.
The prime minister said every country at the G8 - Canada, France, Germany, Italy, Japan, Russia, the US and UK - would be signing up to an action plan on beneficial ownership.
BBC News - G8 summit to make 'real difference' on tax avoidance
Ok so Google avoids tax in the UK by carrying out it's "transactions" in Ireland. So if Ireland signs up to this and Google pays it's tax in the UK instead of Ireland, then Ireland loses out. So where's the gain in Ireland signing up for this???? I must have missed something. Where's the gain for any country, that currently has such companies paying tax there, signing up for this? Before anyone says it, yes I understand different rates and yes those companies will always try move their transactions to the country with the lowest rate. This just seems to be a diversion tactic whereby the governments "appear to be doing something about such large companies paying tax to prove they are" when actually they're not. Seems like an own goal if the countries gaining th benefit sign up
Nick Clegg says it quite well here:
So it's all about the perception that the government is doing something...... not that it is.
The PM told Sky News steps to improve sharing of information by countries and to reveal the true owners of companies "will lead to a fairer tax system".
Shadow business secretary Chuka Umunna said existing UK transparency rules were not being enforced.
The G8 summit will begin in County Fermanagh on Monday.
On Saturday, Mr Cameron met leaders of Britain's overseas territories and Crown dependencies and secured agreement from them to sign up to an international initiative against tax avoidance and evasion.
The prime minister said every country at the G8 - Canada, France, Germany, Italy, Japan, Russia, the US and UK - would be signing up to an action plan on beneficial ownership.
BBC News - G8 summit to make 'real difference' on tax avoidance
Ok so Google avoids tax in the UK by carrying out it's "transactions" in Ireland. So if Ireland signs up to this and Google pays it's tax in the UK instead of Ireland, then Ireland loses out. So where's the gain in Ireland signing up for this???? I must have missed something. Where's the gain for any country, that currently has such companies paying tax there, signing up for this? Before anyone says it, yes I understand different rates and yes those companies will always try move their transactions to the country with the lowest rate. This just seems to be a diversion tactic whereby the governments "appear to be doing something about such large companies paying tax to prove they are" when actually they're not. Seems like an own goal if the countries gaining th benefit sign up
Nick Clegg says it quite well here:
Mr Clegg was asked whether he had raised the issue of corporation tax avoidance during a recent meeting with Google boss Eric Schmidt at No 10.
He replied: "What he says is, 'Look, you guys make the rules, we'll abide by the rules'.
"The point I made to him was, well, yes, there are the rules, but then there's also public sentiment which is very important, not least for customers of Google, who want to see people playing by the rules, yes, but also playing fairly, and providing the taxes that are due in those areas where they operate and where they make significant profits."
He replied: "What he says is, 'Look, you guys make the rules, we'll abide by the rules'.
"The point I made to him was, well, yes, there are the rules, but then there's also public sentiment which is very important, not least for customers of Google, who want to see people playing by the rules, yes, but also playing fairly, and providing the taxes that are due in those areas where they operate and where they make significant profits."
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