In a debate for the Wolverhampton World Poverty Action Group, Emma Reynolds MP (pictured with Paul Brannen of Christian Aid) spoke out against the damaging impact that tax havens have on economies in the developing world. Speaking in support of Christian Aid’s campaign, Emma pointed out the folly of making job cuts at Her Majesty’s Revenue and Customs at the same time that the government is trying to clamp down on tax evasion.

 

Emma said “On average, a taxman on a salary of £25,000 will bring in £300,000 in unpaid taxes. It’s economic madness to be cutting jobs in this department when the staff there are bringing revenue to help pay down the deficit. This is a global problem. Around the world multinational companies make use of tax havens to hide their profits and avoid tax. Despite the warm words, I don’t think the government are being strong enough on this issue”

 

In December 2010, the government published its draft Finance Bill. This will change the law so that multinational British companies will be exempt from paying taxes on its foreign branch earnings. They will also still be able to claim the expense of funding its foreign branches against the tax it pays in the UK.

 

8 April 2011