Foreign-based Companies (Corporation Tax)

Oral Answers to Questions — Treasury – in the House of Commons at 11:30 am on 10 September 2013.

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Photo of Anne McIntosh Anne McIntosh Chair, Environment, Food and Rural Affairs Committee, Chair, Environment, Food and Rural Affairs Committee 11:30, 10 September 2013

What his policy is on the payment of corporation tax by foreign-based companies; and if he will make a statement.

Photo of David Gauke David Gauke The Exchequer Secretary

The Government are committed to creating the most competitive corporation tax regime in the G20 to support investment that drives economic growth. We want a system that is stable and fair with all companies abiding by the rules and making their contribution. We are cutting the rate to 20% by 2015, clamping down on avoidance and aggressive tax planning and driving forward multilateral efforts to modernise the international tax framework.

Photo of Anne McIntosh Anne McIntosh Chair, Environment, Food and Rural Affairs Committee, Chair, Environment, Food and Rural Affairs Committee

Will my hon. Friend join me in celebrating the water industry, a flagship industry since its privatisation over 20 years ago? Will he explain to the House the benefit to consumers of deferring corporation tax against current foreign investment received?

Photo of David Gauke David Gauke The Exchequer Secretary

We need investment in infrastructure, including water and my hon. Friend is right to highlight the work being done on that. We want a tax system that ensures that everybody pays their fair share, but also encourages that type of investment.