ActionAid responds to the government's plans to tackle tax avoidance | ActionAid UK

ActionAid responds to the government's plans to tackle tax avoidance

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The government laid out its plans today to help developing countries tackle tax avoidance and build their public revenues. The measures are a response to parliament’s International Development Select Committee, which earlier this year called for the UK to help ‘developing countries to escape from aid dependency, and from poverty more broadly’ by changing rules governing tax and corporate transparency.

Melanie Ward, Head of Advocacy at ActionAid said: “For the first time, the Government has recognised the crucial role tax has to play in the fight against global poverty. This, and the promise to invest more aid in building up the capacity of revenue authorities, is very welcome.

“But given the sheer scale of tax dodging, the government response to the problem is feeble. As Starbucks, Google and Amazon demonstrated yesterday in the House of Commons, tackling tax avoidance will require concerted global action and so far there is little sign of this happening.

“Only a joint effort will stop multinational companies depriving countries, both rich and poor, of desperately needed revenue. Next year’s spring budget is the perfect time for the government to introduce measures to help poor countries collect taxes owed by British companies. The G8 summit hosted by David Cameron in June is another golden opportunity for the UK to step up and lead the international fight against tax dodging.

“David Cameron recently said the rich world needed to ‘put our house in order’ to help end global poverty. Until the Government is prepared to deal with the massive problem of tax dodging by multinationals, ordinary people around the world will continue to be poorer.”

For further information please contact Asha Tharoor on 020 3122 0614 or email asha.tharoor@actionaid.org

Read the government's response to the IDC report in full here.

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