The taxman has run to the defence of big business this week after it emerged
that close to a third of the UK’s 700 largest companies were
paying a penny in corporation tax.
An NAO report, ‘HMRC:
Management of large business corporation tax’, revealed that almost 33% of
the country’s big businesses paid no tax, with a further 30% paying no more than
£10m a year.
The taxman was quick to rubbish claims that large companies were not playing
‘It is ridiculous to suggest that business does not pay its fair share of tax.
Businesses are using the capital allowances and deductions that government has
put in place.
‘These are not loopholes but are properly policed business reliefs,’ an
HMRC spokesman said.
There are several reasons why companies would not have taxable profits,
including making a loss or making pension fund payments.
J Sainsbury has received a £9m tax credit after pumping £350m into its
pension funds in 2005/06 and 2006/07.
Some have suggested the findings would intensify the debate on how
multinationals and private equity-owned companies manage their tax.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states