Multinational Companies: Corporation Tax

HM Treasury written question – answered on 3rd November 2015.

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Photo of Danny Kinahan Danny Kinahan UUP, South Antrim

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

Photo of David Gauke David Gauke The Financial Secretary to the Treasury

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.

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