The media has reported that Chancellor Rishi Sunak is blocking efforts to end tax avoidance by big multinational companies.
The US President, Joe Biden, has proposed a deal to ensure that all the biggest multinationals are required to pay at least 21% tax on their profits. According to our analysis, it could raise up to £13.5 billion a year for investment in things like the NHS or "levelling up" in the UK.
The UK government has indicated that they are willing to block the introduction of a global minimum corporate tax rate if there isn’t also a deal on taxing the tech multinationals – an international mechanism to replace the UK’s Digital Services Tax (DST).
However, as Tax Justice Network Chief Executive, Alex Cobham, said: “The UK's position simply doesn't hold water. They’re claiming that they want to make sure tech multinationals are properly taxed, while blocking the best opportunity for a generation to curb corporate tax abuse across the board.”
It’s time that the UK either gets with the international momentum for tax justice, or else comes out openly as the last big defender of tax havenry.
You can help us pressure the UK to back the Biden plan by signing and sharing our petition.