MPs HAVE AGAIN accused the taxman of failing to get to grips with collecting the right tax from large businesses.
In another heated Public Accounts Committee hearing with HMRC, ministers said that the taxman found it easier to target smaller businesses – those that can’t leave the country.
HMRC chief executive Lin Homer (pictured) said that multinationals were able to choose where they based their business, and the taxman applied the rules to tax them as it could.
Of the 770 large companies operating within the UK, around half have their base outside of the island, often in jurisdictions with lower corporate tax rates.
At the same time as the PAC hearing, a joint statement by the UK and Germany urged global cooperation to stamp out profit-shifting and other techniques for large business to lower its tax bills.
A full analysis of the PAC hearing will follow soon on Accountancy Age.
At HMRC, Dmitri Surendran was responsible for leading the London team of the offshore, corporate and wealthy unit of the fraud investigation service
Research also finds that 84% of businesses believe that the government has not provided enough information about digital tax plans
A total of £16bn was lost through tax fraud last year, according to estimates released by Pinsent Masons
Additional tax a result of compliance investigations by HMRC, but overall revenue falls