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Taxation: Avoidance

House of Lords written question – answered on 18th July 2013.

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Photo of Baroness O'Cathain Baroness O'Cathain Chair, EU Sub Committee B - Internal Market, Infrastructure and Employment

To ask Her Majesty’s Government whether they will consider re-examining their procurement policy to avoid doing business with companies that pay minimal amounts of United Kingdom tax.

Photo of Lord Wallace of Saltaire Lord Wallace of Saltaire Lords Spokesperson (Cabinet Office), Lord in Waiting (HM Household) (Whip)

The Government is clear that aggressive tax avoidance is totally unacceptable, and we are closing loopholes, bringing in a new General anti-abuse rule, and investing additional funding to help HMRC clamp down on tax avoiders.

The Government has introduced a new procurement policy that ensures government departments can exclude firms bidding for government contracts solely on the basis that they have been non-compliant in meeting their legal tax obligations. More information is at:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/175672/Tax_PPN_ March-13_v07Final.pdf

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