David Cameron calls for global action on tax avoidance

David Cameron calls for global action on tax avoidance
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Summary UK Prime Minister has said that countries must work together to clamp down on tax avoidance.


"Individuals and businesses must pay their fair share," David Cameron told leaders at the World Economic Forum in Davos.


He said that "trade, tax and transparency" were the UK s economic priorities.


It comes a day after he called for negotiations on the UK s place in the European Union, followed by a referendum.


Those that avoid tax "need to wake up and smell the coffee" - an apparent reference to US coffee giant Starbucks, which was widely castigated for paying little tax in the UK but then pledged to pay millions of pounds in corporation tax after a backlash.


The prime minister also defended his choice to offer a referendum on EU membership after 2015, if the Conservatives win the next election, and said that the 27-member bloc needed to change.


"Europe is being out-competed, out-invested and out-innovated," Mr Cameron said.


And Irish Prime Minister Enda Kenny - speaking in Davos in another session after Mr Cameron - said that with "Britain a driving force for the European market, Europe would be stronger", adding that he would like the UK to stay in the bloc.

 

On the issue of renegotiating terms with the rest of Europe, the prime minister said: "This is not about turning our backs on Europe - quite the opposite. It s about how we make the case for a more competitive, open and flexible Europe - and secure the UK s place within it.


"When you have a single currency you move inexorably towards a banking union and forms of fiscal union and that has huge implications for countries like the UK who are not in the euro and never will be."


Mr Cameron is also meeting German Chancellor Angela Merkel in Davos. Mrs Merkel said that Germany would be prepared to discuss new terms with the UK within a framework of "compromise".

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