McDonald’s Tax Arrangements
McDonald’s Tax Arrangements

Thank you for contacting me about McDonald’s tax arrangements and War on Want’s “Secrets and Fries” report.

I share your frustration with the issues raised by the report. It is now vital that the Government and HMRC give them the proper consideration. 

It should go without saying that it is a fundamental principle of our tax system that everyone pays their fair share. That large multinationals avoid doing this in the UK is an issue that rightly angers people across the country. 

As a result of this behavior we miss out on vital revenue that could support our public services. It also leaves British businesses that play fair at a disadvantage. To provide a level playing field for British businesses and deliver a fair economy, it is vital that large multinational corporations pay their fair share of tax.

This is a very bitter pill to swallow, as right now people across the country are feeling the real world impacts of rising prices. Whether it’s at the petrol pump or the supermarket, or when we get our energy bills, we’re all noticing it. In Sheffield the cost to households from April onwards when the energy price cap is lifted could reach a staggering £146 million.

Many constituents like yourself have contacted me in the past few weeks to voice their justifiable disgust towards a Government that is refusing to support people through this energy crisis. Instead of supporting those in need, the Torys are choosing to give companies loans, loading costs onto taxpayers with a buy now, pay later scheme. We are being forced to pay the price for this Tory created chaos. 

Unfortunately, the Government has continued to drag its feet on global tax avoidance. For example, while the global minimum corporate tax rate of 15% agreed last year is a positive step, I was disappointed at the Government’s initial refusal to back a global minimum rate and its reluctance to back the 21% rate proposed by US President Biden. Furthermore, where the Government has sought to act on tax avoidance, I believe it has taken measures that are minor and technical rather than the more definitive action the public wants to see.

I have long supported public country-by-country reporting, for example, to deliver greater transparency around the taxation of multinational companies. The reluctance of the Government to require this, and the way in which I believe it has held up progress on this issue at an international level, are deeply frustrating. I also agree that we need the Government to ensure HMRC is able to tackle tax avoidance effectively. In addition, I believe we need to look at every single tax break so we can scrap those that simply provide loopholes for those who can afford the best advice and that do not deliver for the taxpayer or the economy.

Thank you once again for contacting me about this issue. I can assure you that I will continue to support efforts to push the Government to do more to tackle tax avoidance.

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