The Committee will question Ms Hodge on the PAC’s success in drawing attention to the tax avoidance activities of some multinational companies and whether the root cause of the problems with corporate taxation stem from failures of the tax code. She will be asked whether the risk of reputational damage is an effective tool in encouraging multinationals to pay more tax in the UK and what needs to change at HMRC and the Treasury to improve their performance in collecting tax revenue from multinational companies.
The Committee will also take evidence from representatives of a number of legal firms dealing with corporate taxation. The witnesses from Slaughter and May, Macfarlanes and BLP will be asked about the distinction in the tax code between debt and equity, whether the recent OECD recommendations for a reassessment of the way profits are allocated between countries by multinationals should be pursued and for their views on the Chancellor’s recent comments that promoters of tax avoidance schemes should be named and shamed.
The evidence sessions will start at 3:35pm on Tuesday 4 June in Committee Room 1 of the House of Lords. The full details are:
Steve Edge, Partner, Slaughter and May
Ashley Greenbank, Partner, Macfarlanes
Gary Richards, Partner, BLP
Rt Hon Margaret Hodge MP, Chairman, House of Commons Public Accounts Committee.