Thank you for contacting me about double taxation treaties.
Bilateral tax treaties are important in encouraging and promoting investment, increasing employment, encouraging the free flow of quality goods and services and (directly and through greater trade) raising crucial tax revenues, which finance public services in both countries.
The UK has about 130 tax treaties with countries across the globe, including several with developing countries. These treaties support and sustain trade links and investment by tackling double taxation and clamping down on cross-border avoidance and evasion.
I agree that there is more that can be done to tackle tax evasion. I am pleased that significant progress on this issue has been made. For example, the UK Government drove forward the international work on country by country reporting, which provides more information to tax authorities, so that they can investigate larger companies' tax strategies. By making UK-based multinationals publish their tax strategies, it will strongly discourage those who fail to comply with their tax duties.
I am proud that my colleagues in Government are leading the way to ensure that large multinational companies meet their tax obligations- wherever they operate.
Thank you again for taking the time to contact me.
