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Written question asked by Baroness Miller of Hendon (Conservative), in the House of Lords. It was answered by Lord Sassoon (Conservative) on Monday, 12 November 2012.


Taxation: Corporation Tax

Question

To ask Her Majesty’s Government whether they have assessed the impact of introducing a turnover tax, offsetable against actual assessed corporation tax, for trans-national companies and groups of companies operating in the United Kingdom and engaging in internal transfer pricing arrangements to limit their corporation tax liabilities.[HL2909]

Answer

Along with most major economies in the world, the UK charges corporation tax on profits derived from economic activity carried out in the UK, not on sales or turnover.

The UK system is based on internationally agreed principles that determine how much profit each country should tax. The Government are alert to the risk that some companies may try to structure their affairs so that profits from UK-based economic activity are not taxed here. The UK has specific tax rules to combat tax avoidance by international companies; and supports the G20 endorsed international action on base erosion and profit-shifting.


Secondary information

Type
Written question
Reference
740 c260WA; HL2909
Session
2012-13
Related items
Taxation: Tax Relief
Tuesday, 11 December 2012
Written questions
House of Lords
Subjects
Corporation tax Tax avoidance Multinational companies
Link
View this Written question on www.publications.parliament.uk