Cameron lashes tax avoiders
In an apparent swipe at Starbucks and other multinationals, Mr Cameron said the public had "had enough of businesses who think that they can carry on dodging their fair share or that they can keep on selling to the UK and setting up evermore complex tax arrangements abroad to squeeze their tax bill right down".
In a passionate speech in Davos, Mr Cameron said Britain would use its leadership of the G8 to clamp down on tax avoidance as part of a drive to boost trade and efficiency, particularly in Europe.
Declaring that "aggressive tax avoidance" was a problem for "all countries, not just for Britain", he said he would "lay down the rules and enforce them". He argued the G8 needed to work together to stop the "travelling bandwagon" of lawyers and consultants from moving on once tax loopholes were closed.
Michael Izza, chairman of the Institute of Chartered Accountants in England and Wales, the trade body for chartered accountants, said he was "disappointed to hear the Prime Minister again dismiss accountants, this time as an 'army' of avoiders. We don't recognise that description."
Despite criticism of the UK referendum, Mr Cameron used his speech to launch a blistering attack on the European Union. He called for Europe to "be frank" about its performance and said the bloc was being "out-competed, out-invested and out-innovated".
German Chancellor Angela Merkel surprised delegates by backing Mr Cameron rather than launch a counter-attack. She used her speech to back Mr Cameron's calls to clamp down on tax avoidance and to boost competitiveness. "EU member states can only grow when they produce goods that can be sold on the international market place," she said.
But Mr Cameron immediately faced criticism for damaging Britain's attractiveness to international firms with his tax threats.
Frequently Asked Questions about this Article…
In the Davos speech described in the article, Prime Minister David Cameron launched a broadside at multinational tax avoiders, telling them to "wake up and smell the coffee" and pledging to lead the global fight against "aggressive avoidance." He said Britain would use its G8 leadership to clamp down on avoidance, lay down rules and enforce them.
The article says Cameron made an apparent swipe at Starbucks and other multinationals, saying the public had "had enough" of businesses that sell to the UK while using complex tax arrangements abroad to squeeze their tax bills.
According to the article, Cameron argued the G8 needed to work together to stop aggressive tax avoidance by laying down rules and enforcing them and preventing a "travelling bandwagon" of lawyers and consultants from simply moving on once loopholes were closed.
The article reports Michael Izza, chairman of the Institute of Chartered Accountants in England and Wales, said he was "disappointed" Cameron described accountants as an "army" of avoiders and that the trade body did not recognise that description.
The article notes German Chancellor Angela Merkel surprised delegates by backing Cameron rather than launching a counter-attack; she supported calls to clamp down on tax avoidance and to boost competitiveness across Europe.
In the same speech, Cameron launched a blistering attack on the European Union, urging Europe to "be frank" about its performance and saying the bloc was being "out-competed, out-invested and out-innovated."
The article says Cameron immediately faced criticism that his tax threats could damage Britain's attractiveness to international firms, suggesting some observers worried tougher enforcement might deter multinational business activity in the UK.
Based on the article, the debate could matter to everyday investors because tougher international action on "aggressive avoidance"—pushed by Cameron and backed by leaders like Merkel—might change how multinationals organise taxes and operations. The article also notes concerns that strong enforcement could affect the UK's appeal to global firms, which could be relevant to investment decisions involving UK-listed multinationals.
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