Just days after the G8 agreed to support developing countries collect the taxes they are owed, a UK parliamentary committee has quashed a key piece of legislation that would have made the task easier.
The Finance Bill committee voted against an amendment that would have required UK-based multinationals to report their use of tax avoidance schemes likely to have an impact on developing countries.
The amendment was tabled by Labour members based on a recommendation from the Enough For Everyone IF campaign which says tax evasion by multinationals costs developing countries US$160 billion a year.
IF campaign spokesperson Melanie Ward said: "It was only two days ago that the Prime Minister was telling the world that it is vital to help poor countries tackle tax dodging, and yesterday he told Parliament the same.
"Today's refusal by Treasury Ministers at the Finance Bill Committee to consider the impact of proposed new tax rule changes on developing countries is shocking.
"It seems like Treasury Ministers haven't got the memo. The government is saying one thing while doing another. The PM must urgently intervene and bring some coherence to his government's policies."
The IF campaign believes tax reform and greater transparency are fundamental to the battle to eradicate acute hunger which affects some 868 million people globally.