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Foreign-based Companies (Corporation Tax)

Volume 567: debated on Tuesday 10 September 2013

7. What his policy is on the payment of corporation tax by foreign-based companies; and if he will make a statement. (900225)

The Government are committed to creating the most competitive corporation tax regime in the G20 to support investment that drives economic growth. We want a system that is stable and fair with all companies abiding by the rules and making their contribution. We are cutting the rate to 20% by 2015, clamping down on avoidance and aggressive tax planning and driving forward multilateral efforts to modernise the international tax framework.

Will my hon. Friend join me in celebrating the water industry, a flagship industry since its privatisation over 20 years ago? Will he explain to the House the benefit to consumers of deferring corporation tax against current foreign investment received?

We need investment in infrastructure, including water and my hon. Friend is right to highlight the work being done on that. We want a tax system that ensures that everybody pays their fair share, but also encourages that type of investment.