|
|
31 Mar 2011
MPS ARE CALLING for an investigation into tax avoidance by multinational companies.
Members of the Treasury select committee have been privately calling for an inquiry into the issue of corporate tax avoidance, the Independent has reported. This would involve summoning heads of large companies, including Sir Philip Green.
Further reading
The select committee has already heard evidence about Vodafone's tax bill while questioning HM Revenue & Customs permanent secretary for tax Dave Hartnett.
Companies such as Vodafone, Arcadia and Barclays have been subject to criticism over their tax arrangements. Earlier this year, Barclays announced that it had paid £113m in corporate tax last year out of a total tax bill of £2bn.
You may also like
Search thousands of financial jobs:
Search thousands of financial jobs:
Careers
Search for jobs
Click to search our database of all the latest accountancy roles
Create a profile
Click to set up your profile and let the best recruiters find you
Jobs by email
Sign up to receive regular updates with the latest roles suitable for you
Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
Visitor comments Add your comment
Emotive reporting
I see a lot of reports about tax "avoidance" at present hinting (or worse) that this is some sort of illegal activity. Joe Public, so-called pressure groups and Labour MPs, all of whom clearly do not understand the issue, now seems to believe it actually is whilst still thinking they personally should pay less tax. For example, whilst they are not my cup of tea, Barclays paid very little tax solely due to losses made in the prior year(s) and / or profits not actually being anything to do with their UK business. The reports tend to omit the reasons for low tax bills just trumpeting the headline numbers! Immoral, possibly; illegal - not at all.
Please can we have some better informed and honest reporting in future!!
Posted by: Philip Eastlake, FCA, 31 Mar 2011 | 11:52
Tax Avoidance
Looks like the Treasury are getting a bit confused as I always thought that Tax avoidance was legal. The confusion probably arises because the MP's thought they were dabbling in tax avoidance when they fiddled their expenses and the country as a whole.
Maybe the difference between tax avoidance and tax evasion - namely the thickness of a prison wall - is set to dissapear.
Posted by: Bill Stevenson, 31 Mar 2011 | 13:54
Emotive reporting
OK Phillip you might be able to judge there were probably tax losses available
if last year's Accounts showed a loss but how do you know the extent of "profits not being anything to do with the UK" That would need published and audited country by country reporting
Posted by: Stephen Griffiths, 31 Mar 2011 | 15:58
Segmental Reporting
2010: 40% of income from UK & Ireland, 80% of profits from Barclays Capital.
Sadly no split of profits by region, but given their overall tax liability was 25% of profits, there's no reason to assume that tax was significantly underpaid in the UK.
Posted by: Jon Boston, 01 Apr 2011 | 17:52