Newcastle North MP, Catherine McKinnell, has today (15th March) co-sponsored a Bill in Parliament which seeks to end secrecy around multinational companies’ taxes.
The Government is legislating to require large multinational companies to report their tax, revenues, profits and assets to HM Revenue & Customs (HMRC), as part of an international effort to tackle tax avoidance. However, the Government’s plans only require this information to be shared with HMRC, on a confidential basis.
The Multinational Enterprises (Financial Transparency) Bill – introduced to the House of Commons today by Catherine’s Labour colleague, Caroline Flint MP – would instead ensure this information becomes public.
Catherine said:
‘I know that people across Newcastle want to see successful companies in the UK, but they want them to pay tax fairly.
‘They also don’t think it’s fair that too many multinationals appears to be choosing the tax they want to pay, rather than the tax they should pay, via complicated international structures and arrangements.
‘It’s vital that public confidence in our tax system is restored, and I have long believed that increased transparency is a key step towards achieving that. This Bill will put basic information about multinationals’ financial dealings in the public domain, and I’m pleased to have given it my support today.’
Rt Hon Caroline Flint MP said:
‘I am delighted that Catherine is supporting the Multinational Enterprises (Financial Transparency) Bill. Only by making these companies become more open will we restore public faith that they are paying fair taxes. The winners from public reporting are the Government, HMRC, those businesses and taxpayers who already pay fair taxes and developing countries who are being short changed.’
The Bill – known as the #showmethemoney campaign – is also supported by NGOs including Oxfam, Christian Aid, ActionAid and CAFOD, and has the backing of the Fair Tax Mark and Tax Justice Network.
MPs are hoping that the Government will support the Bill or include its principal purpose in this year’s Finance Bill, which will be introduced following the Chancellor’s Budget.