I am not sure that we should use the term “UK-owned” as I am not sure that our friends in Jersey or Guernsey would appreciate that kind of description, although perhaps it is true in respect of the Crown. The hon. Lady is right that we should set an example of leadership, however, and try to ensure that the territories over which we have some influence have rules that comply with global standards. We heard some encouraging noises from the UK’s overseas territories when they agreed some issues with the Prime Minister before the G8 summit. Quite a few have taken pretty good steps in the direction of transparency by signing information exchange agreements, so we should not impugn them all with the same accusations, as some are clearly more a matter of concern than others.
Let me return to the proposal to require the publication of corporation tax returns. The requirements applying to UK company accounts include a requirement to publish a tax note that reconciles accounting profit with the tax charge and lists the key factors involved. It was intended to provide a summary of the tax return in some respects. If the tax charge is materially different from, say, 24% of the accounting profit, the reasons should be set out so that the user of the accounts can understand what is happening.
I have probably read more sets of accounts than most Members of Parliament. I am not sure that the tax note takes the user any further, because it is so brief, because there are so many ways of merging entries, and because of the impact of deferred tax. The note was designed to deal with the absence of complete transparency in regard to corporate tax affairs, but I think we could achieve that much more effectively by requiring the publication of actual tax returns. That would not reveal too many commercially sensitive data; indeed, I think that far more information is required in a set of statutory accounts than would ever be required in a corporation tax return.
We would probably not be acting unilaterally, given the disclosures that are required by many other stock exchanges around the world. The disclosures required by, for example, the Securities and Exchange Commission for its listed corporations are well in excess of those required in the UK. I do not think that this simple step would put us out of line with the rest of the world. Given requirements to disclose the tax amounts, taxable profits, how they were arrived at, and the details of overseas transactions with related parties, including amounts and charges, I do not consider it particularly onerous for a company to be required to declare “We have paid royalties of £5 million to our US parent.” In fact, many sets of accounts include such declarations. There are measures that we could take as a UK regime that would not harm our standing in the world.
I think that if there is one action that will damage prospects for UK investment, it is allowing a series of large multinational investors to be dragged through the newspapers, hauled over the coals and accused of engaging in abusive tax practices, especially when they are innocent. We do not want a regime that allows information relating to selected people to be leaked. Let us enable that information to be clearly, generally and widely published so that everyone can see who is responsible for bad behaviour, rather than trying to attack those who are innocently taking advantage of reliefs that we have sensibly introduced.
Although I agree with the intention behind most of new clause 12, I do not think that it will work. I have proposed a way of ensuring that the information we need is in the public domain year after year without imposing an unacceptable burden on UK corporate taxpayers. Perhaps the Opposition will back that proposal, which I shall continue to advance whenever we debate an issue that we have probably already debated half a dozen times this year.