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Corbyn issues clear warning that multinationals must ‘pay their fair share’ of tax

The Canary by The Canary
23 November 2019
in News, UK
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Jeremy Corbyn has vowed to stop multinational companies offshoring their tax bills to “lower tax regimes” with measures to force them to pay their fair share in the UK.

The Labour leader met workers at an Amazon depot in Sheffield as he warned big companies they would have to pay taxes on all operations in the UK.

Labour expects the measures would raise £6.3bn for the exchequer in 2024 to help pay for its manifesto plans to nationalise key utilities in a “green industrial revolution”.

Corbyn and shadow employment rights secretary Laura Pidcock set out plans to clamp down on “enablers of tax dodging”, increase HMRC targeted audits and establish an inquiry into the finance sector.

Amazon is owned by one of the richest people on the planet but it refuses to treat its workers with dignity and respect.

Today I’m proud to join them and @GMB_union as Labour promises a new deal for workers and their families. pic.twitter.com/gZqvHpah15

— Jeremy Corbyn (@jeremycorbyn) November 23, 2019

If Labour wins the December 12 election, it would introduce a 20% offshore company property levy, require greater scrutiny of MPs’ tax affairs and scrap non-dom status which gives tax advantages.

Labour was also highlighting existing policies to end in-work poverty with plans to give a £10-an-hour minimum wage for all, ban zero-hours contracts and give every worker full rights from their first day in a job.

The Labour leader told reporters:

We’re here to say to big companies that operate in Britain that in future you’re going to have to pay taxes on all your operations in this country – you will not be able to offshore your tax bill to some lower tax regime.

I think these are just basic issues of social justice and that’s why I’m here this morning.

He said zero-hours contracts would be a “thing of the past” under Labour, and everyone in work would know “exactly what their basic income is going to be”.

Corbyn has long challenged tech giants, previously writing a birthday card to Amazon founder Jeff Bezos wishing the company “many happy tax returns” and demanding it pays more UK tax and improves working conditions.

An Amazon spokesperson said:

These claims about Amazon are false. The Government wrote the tax laws and they are designed to encourage investment, and we are investing heavily in creating jobs and infrastructure across the UK – more than £18bn since 2010.

This investment helped contribute to a total tax contribution of £793m during 2018 – £220m in direct taxes and £573m in indirect taxes.

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