News feed from Ethical Consumer - Tax avoidance on the increase

Tax avoidance on the increase

Freedom of information request shows 48% rise Reuters today reported that her Majesty's Revenue and Customs (HMRC) have seen a 48% rise in the amount of tax that big companies may have underpaid by using well known tax avoidance methods. In response to a Freedom of Information Act request the HMRC said the amount of 'tax under consideration' from large businesses, in relation to transfer pricing* and thin capitalisation inquiries*, was £1 billion at 31 July 2012, up from £680 million at the end of March 2011. 'Tax under consideration' is an estimate of the sum HMRC thinks may be owed by a group of companies. The data HMRC published relates to the companies covered by its Large Business Service, which focuses on the 800 biggest companies in the country. The tax authority said that after investigation of individual cases, the amount it usually finds to be outstanding is half...

Full article: http://www.ethicalconsumer.org/latestnews/tabid/62/entryi...