A quarter of large firms ‘paying no tax’
A quarter of the UK’s largest businesses paid no corporation tax during 2005-6, according to the Commons public accounts select committee.
The committee of MPs has called on HM Revenue and Customs to pursue companies that avoid paying tax more robustly and criticised the variations in the amount companies paid.
In total, 181 of the largest companies paid no corporation tax in 2005-6 while 50 companies accounted for two-thirds of the £24bn total paid in 2006-7.
Many companies use legitimate tax relief and avoidance schemes but the committee wants to see a more uniform system.
HMRC claims to have improved the manner in which it targets companies suspected of underpaying corporation tax in the past three years.
“We have cut the number of open inquiries by over 50% since April 2007,” said a spokesman.
