Tax investigations into multinationals yield £4.7bn

by Calum Fuller

More from this author

01 Nov 2012

  • Comments
Lin Homer

INVESTIGATIONS into the tax affairs of multinational businesses have brought approximately £4.7bn into the public purse over the last five years, MPs heard.

HM Revenue & Customs chief executive Lin Homer (pictured) said the department performs "reasonably well" by international standards as she defended its record on dealing with tax avoidance, particularly by big corporations.

She added that the public does not "get" the tax rules relating to international companies, reports the Financial Times.

"One of the challenges for people to understand is that, in broad terms, companies are required to pay corporate tax in the country where they carry on the economic activity, not necessarily where the customers are located," she said.

HMRC director-general of business tax Jim Harra would not be drawn on the cases of Facebook, Google, Starbucks and Amazon, despite the criticism they have faced over their UK tax bills, citing the principle of taxpayer confidentiality.

While he was keen to emphasise there is both a legal and social responsibility for companies to pay a fair share, Harra conceded "there can be a whole variety of reasons why a business, large or small, may pay less than the business next to them".

He added that transfer pricing – intra-group purchase of goods and services – can allow multinationals to augment their profits. That practice, he said, is subject to internationally recognised regulations administered by the Organisation for Economic Co-operation and Development (OECD).

Visitor comments

blog comments powered by Disqus
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit
  • Send

eeHead of Finance - Custome Service EE, London, Permanent, Full Time

 
 
 
 
 
 
 
 

 

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

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

budget-management

Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.

cchcover

iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.