Big companies 'avoid £20bn' in tax
Tax Justice Network issues report comparing effective tax rates to actual tax rates
Tax Justice Network issues report comparing effective tax rates to actual tax rates
Britain’s 50 largest companies have avoided £20bn in tax since the year 2000,
according to a report by lobby group the Tax Justice Network.
The study, released at the weekend, examined the top 50 companies in the
FTSE100 and examined their effective tax rates, at 24.5%, against the notional
corporate tax rate, of 30%.
If they had paid the full amount, they would have paid £20bn more in tax of
which £12bn could have gone to the UK exchequer, the report’s author Richard
Murphy said.
‘The tax gap is growing steadily, a trend that is not explained by changes in
tax rates around the world. That means tax avoidance has to be a significant
part of the explanation,’ Murphy was quoted in The Observer saying.
Companies mentioned in the report defended their low tax bills yesterday.
Astrazeneca, which paid a 23% rate, said it operated around the world where
different and lower tax rates applied, as well as receiving credits for R&D
work. BAA, said it got tax allowances for its investment in infrastructure.
Murphy has insisted that global variances in tax rates could not explain the
low rates completely. A weighted average of worldwide tax rates would suggest
they should have paid tax at 29.7%, he said.
Tax avoidance has become an increasingly sensitive issue for corporates, with
the Tax Justice Network establishing itself as a leading critic.
To read the report go to
http://www.thetaxgap.com/4682.html.
A blog discussing the issues raised has also been set up at
http://taxgap.blogspot.com/.