CORPORATE TAXATION AND OECD PROPOSALS

That this House supports the proposals put forward by the OECD in a reform programme announced in October 2015 to make it harder for firms to move profits to tax havens; welcomes the commitment by the Chancellor to bring forward legislative proposals to enact those reforms, but believes that the OECD was wrong in not tackling the most blatant abuse, known as transfer pricing, which makes it easy for corporations to escape corporate taxation; agrees with the Chancellor's tweet from the International Monetary Fund annual meeting in Peru in October 2015, which said that taxes should be paid where profits are made; and believes that the Chancellor, when introducing legislation to implement the OECD proposals, should go further and should introduce the system used in the US whereby instead of taxing the subsidiaries of multinational groups as if they were separate entities, corporations are taxed on their consolidated global profits based on the share of sales made by the multinational group in the UK.