Largest companies pay £11bn in corporate tax

The largest companies within the UK are contributing £11bn of the total
corporate tax take, according to a survey.

The
2008
Total Tax Survey, which is published by PricewaterhouseCoopers on behalf of
the Hundred Group of Finance Directors, shows Britain’s largest companies paid
almost a quarter of overall corporate tax receipts in the year to 31 March 2008.

Ashley Almanza, chairman of the Hundred Group of Finance Directors, said the
survey findings illustrate the extent to which the largest companies support UK
public finances.

In addition, he said The Hundred Group member companies provide a high
proportion of skilled, high value jobs which attribute to the competitiveness of
the UK economy.

‘In this economic climate the tax burden on large companies needs to be well
understood. Taxation levels have an important impact on our ability to compete
in a fiercely competitive global economy.

‘The ideal is to encourage economic activity and thereby grow overall tax
revenues,’ he said.

According to Susan Symons, tax partner at PwC, findings of the survey
evidence the issue of improving competitiveness within the tax system.

“This data is valuable evidence in the debate on how to improve the
competitiveness of the tax system.

‘The drop in corporation tax paid by participants in this year’s survey
highlights the sensitivity of corporation tax to competition and economic
change,’ she said.

Further Reading:

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tape warning over HMRC plans to simplify tax for SMEs

HM
Revenue & Customs writes to chairmen to ask about tax risks and establishing
greater dialogue