The UK Parliament’s House of Lords held a debate on the tax implications of multinational corporations shifting profits to low and no-tax jurisdictions, with the Treasury setting out the government’s stated approach to tackling base erosion and profit shifting (BEPS) while maintaining an internationally competitive tax system. In opening remarks, Lord Sikka cited estimates that multinationals shift around USD 1.4 trillion of annual profits into tax havens, leading to USD 348 billion a year in lost direct tax revenue. Baroness Kramer referenced OECD estimates that 4% to 10% of global corporate tax revenue is lost annually through BEPS. Responding for the government, Lord Livermore said the objective is a competitive tax system where businesses pay their fair share in the UK, and reiterated a commitment to address unfairness in the international tax system and protect the UK against BEPS where it exists.
UK Parliament 2025-01-31
UK Parliament's House of Lords debates tax impact of profit shifting to low and no-tax jurisdictions
The UK House of Lords debated multinational corporations shifting profits to low-tax jurisdictions. The Treasury outlined its approach to addressing base erosion and profit shifting (BEPS). Lord Sikka highlighted USD 1.4 trillion in profits shifted annually, resulting in USD 348 billion in lost tax revenue. The government aims to maintain a competitive tax system while ensuring businesses pay their fair share and addressing international tax system unfairness.