Corporate profit shifting discussed in the Lords

Debate

Lord Sikka (Labour), director and trustee of the Association for Accountancy and Business Affairs, put forward the debate.

Members speaking

Contributing members included:

• Baroness Coffey (Conservative), former Deputy Prime Minister
• Viscount Hanworth (Labour), professor of econometrics at the University of Leicester
• Lord Leigh of Hurley (Conservative), chair of the Corporate Finance Faculty, Institute of Chartered Accountants in England and Wales
• Baroness Kramer (Liberal Democrats), former vice-president of Citibank/Citicorp USA.

Opening the debate, Lord Sikka said:

'Multinational corporations are shifting annual profits of around $1.4 trillion into tax havens, causing governments around the world to lose $348 billion a year in direct tax revenue.'

Baroness Kramer added:

'At the global level, the OECD estimates that, annually, some 4% to 10% of global corporate tax revenue is lost through base erosion and profit shifting.'

Lord Livermore (Labour), Financial Secretary to the Treasury, responded on behalf of the government:

'The government’s objective is to maintain an internationally competitive tax system, where businesses pay their fair share of tax in the UK.

'The government are committed to addressing unfairness in the international tax system and protecting the UK against base erosion and profit shifting, where it exists.'

Catch up

• Watch the Parliament TV recording.
• Read the Lords Hansard transcript.

Explore background information  

• Find out more about the issues the debate covers in the House of Lords Library briefing. 
• Learn more about how the House of Lords checks and challenges government. 

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