Speaking at the “fringe” of a conference held by the Association of British Insurers, Cable is reported to have said countries had been caught out by the growth of multinational companies like Google and Amazon who have been able to shop around for the best tax regime.
He is reported to have said: “Governments have been very fragmented. They are behind the curve. We operate national systems of business taxation and enforcement in a world where companies operate on a global scale, seeking out low tax jurisdictions. Governments are at a disadvantage.”
Speaking specifically about international coffee-shop chain Starbucks, which fell foul of public opinion earlier this year when it was revealed the company had paid only £8.6m in corporation tax in the 14 years it has operated in the UK, Cable said the company’s offer of £20m to the taxman had not necessarily closed the matter.
When asked if the payment had brought an end to the row, he said: “Absolutely not at all. It is really for HMRC to work out whether their offer is remotely commensurate with what they should be paying.”
