Molly has written to George Osborne demanding he clarify the government’s approach to tackling tax avoidance . Mr Osborne recently pledged his support for public country-by-country reporting (CBCR) which would require companies to report transparently exactly where they carry out their economic activity and generate their revenues and so ensure a fair level of tax is paid. However, Tory MEPs voted against such a proposal in the European Parliament last year. Molly, who sits on the Parliament’s special committee on tax and is Green Party speaker on finance, said:
“Public country-by-country reporting for all sectors is essential in providing transparency and ensuring the tax strategies of corporations can be properly scrutinized. It is something the Greens have long pushed for so I am pleased the chancellor appears to be a new convert. However, perhaps he could provide his MEPs with an economics lesson on effective measures to tackle tax avoidance, as they seem not to have got the message, voting against country-by-country reporting in the European Parliament.
“The public needs to know if this is a genuine change of heart or just warm words issued during the heat of the Google fiasco. This is why we want clarification on whether it is now UK Government policy to support CBCR; whether Mr Osborne will now promote this policy in Europe; and if he will seek to form an alliance of Member States in favour of such a policy, thereby ensuring that a minority of countries do not block this vital anti-tax avoidance measure.”