Liberal Democrat Deputy Leader Jo Swinson MP has written to the Chancellor of the Exchequer calling on him to throw his weight behind a new EU tax on tech giants. 

Leader Vince Cable has co-signed the letter, which urges Philip Hammond to use the Budget to set out how he will incorporate the EU’s initiative into any Treasury initiative to tax big internet firms.

Following reports that a new European tax on internet companies could be agreed by the end of the year, Jo said:

“I urge the Chancellor to focus his energy on making this EU-wide tax happen. This is a golden opportunity that we cannot afford to miss.

“Tech giants are getting away with not paying their fair share of tax because we make it easy for them.

“The time to act is now if we want to create a level playing field for businesses in the UK and give our struggling high streets a much needed boost.

“Britain is always at its best when it brings countries together in a common cause. If we want to tax tech giants we must work together with our European allies and others around the globe.”

Notes:

Here is a copy of the letter:

Jo Swinson MP and Rt Hon Sir Vince Cable MP

House of Commons

London

SW1A 0AA

The Rt Hon Philip Hammond MP
Chancellor of the Exchequer
HM Treasury
1 Horse Guards Road
London

SW1A 2HQ

12 October 2018

Dear Philip,

You have already indicated that the Budget, due shortly, will contain specific measures to deal with the egregious tax avoidance perpetrated by large international tech companies.

On 10 October, Pierre Moscovici, head of tax for the European Commission, indicated that an EU-wide agreement on a new tax of large international tech companies is “doable” by the end of 2018.

We therefore urge you to work with our European partners to ensure that a timely agreement can be reached so that tech giants finally pay their fair share in tax. This is a golden opportunity that we cannot afford to miss.

With a multilateral tax deal on the table and with France and Germany both keen on reaching an agreement, the UK must do everything in its powers to secure a deal across Europe by the end of the year. The Budget, of course, provides an ideal opportunity to set out the actions you will be taking and we would urge you to incorporate this initiative within it.

As you have previously acknowledged, a multilateral tax agreement is a far more effective means of taxation for internet companies than a UK-only system. We must work with our European allies and explore all potential avenues for an international agreement.

We also ask for you to confirm that, regardless of the outcome of Brexit, the UK will continue to work closely with the European Union on creating a multilateral tax system for global tech companies.

We look forward to hearing from you.

Kind regards, 

Jo Swinson MP                                              Rt Hon Sir Vince Cable MP