The Prime Minister says that the only way the UK can truly clamp down on individuals and companies engaging in tax avoidance is through international aid.
James Cameron says that international co-ordination is needed to end the threat of people and companies hiding behind tax loopholes in order to avoid paying their fair share of taxes. In fact, the PM had harsh words for large companies such as Starbucks for their widely-known and seemingly miraculous ability to avoid paying millions – if not billions – in taxes.
Mr Cameron made no bones about being a Conservative politician that preferred low taxes on businesses in order to foster economic growth, but in a recent statement given on the island of Davos at an international summit, he was adamant in demanding that companies pay their fair share . The Prime Minister wanted to work towards reducing or downright eliminating tax avoidance with Japan, Canada, Italy, Russia, France, Germany, and the US – the UK’s G8 allies – in order to provide better tax revenue for every country involved and not just the UK.
There are limitations on what a sovereign country can achieve on its own whilst attempting to wrangle international taxation, said Mr Cameron. Speaking from experience in how many companies and individuals in he UK have been thumbing their nose at HMRC in new and aggressive manners to the point of even raising ethical questions, the Prime Minister said it’s high time to look for more responsible governance across international boundary lines.
The UK is hosting the G8 this year, which places Mr Cameron in an excellent place to call for greater transparency for taxation and the collection of tax revenues. Less affluent countries that lack the requisite resources would benefit greatly from such tax overhauls, the Prime Minister added.