Global Firms Tax Insult to UK

Global Firms Tax Insult to UK.

Public Accounts Committee chairwoman Margaret Hodge MP said that it is an “insult” to the UK taxpayer that global businesses operating in the UK are paying their fair share of taxes in the UK.

Corporate tax avoidance schemes are commonly used by international corporates to move profits overseas to subsidiaries and thus avoid taxes in the UK.

MPs are raising the pressure on companies to declare more accurate income and expenditure levels in the UK to pay tax commensurate with the trade they conduct in the UK.

Our view

HMRC and the Government have really ‘got the bit between their teeth’ on this with one high profile, lower tax payer, Starbucks, already committing to change their accounting procedures and is in discussions with HMRC.

Tax due where the trade takes place seems reasonable and fair.  We suggest though it may encourage many brands to not come to the UK.  These are tough times and it is a trade-off between having the goods and services that we want or the UK publics’ money to stay in the UK.