Cable to investigate tax haven subsidiaries

Cable to investigate tax haven subsidiaries

The business secretary has announced there will be a crackdown on firms that fail to disclose subsidiaries based in tax havens

FIRMS THAT FAIL to disclose subsidiaries based in tax havens will be subject to a crackdown, business secretary Vince Cable has said.

Companies are obliged to confirm the locations of subsidiaries under the Companies Act 2006. Directors that fail to do so are liable to pay penalties, but this has not yet been invoked. The ActionAid charity claimed this year that 49 FTSE 100 companies were breaching the rules. A Daily Mail investigation found out that 27 of the 49 had since complied, declaring more than 1,000 tax havens between them.

Cable said: “We must do the maximum possible to stop tax avoidance using powers that haven’t yet been invoked.”

Chuka Umunna, a Labour member of the Treasury select committee is expected to table Parliamentary questions on the issue this week.

Martin Hearson, policy adviser at ActionAid, said: “We want to see an informed debate about tax avoidance in the UK and in developing countries, and we’re pleased that across government the momentum is building for more corporate transparency.”

A spokesman for the Department of Business, Innovation and Skills said: “Companies House has delegated authority to act on the secretary of states behalf in cases where accounts appear to be defective. They have assured BIS that they will actively pursue companies who fail to comply with the accounts requirements under company law.

“We are clear that any failure to comply must be investigated and Companies House will do that.”

 

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource