Osborne boosts tax avoider probes

Written By Unknown on Minggu, 02 Desember 2012 | 19.12

2 December 2012 Last updated at 07:08 ET

Chancellor George Osborne has pledged more funds for the UK authorities to tackle tax avoidance by multinationals.

He told the BBC that an announcement would be made on Monday about the "extra investment" for the Inland Revenue to deal with the issue.

It comes as Starbucks said it was in talks with HM Revenue and Customs about how much tax it pays.

Big-name firms including Starbucks have been criticised after it emerged they pay little or no UK corporation tax.

A Public Accounts Committee report on the issue of how much tax multinational firms pay in the UK is due on Monday.

"We have listened to feedback from our customers and employees, and understand that to maintain and further build public trust we need to do more," said a Starbucks statement.

"As part of this we are looking at our tax approach in the UK. The company has been in discussions with HMRC for some time and is also in talks with The Treasury."

It said more details would be released later this week.

Mr Osborne did not single out any firms while making his announcement on the Andrew Marr Show.

He also said that as well as his extra funding for the UK authorities, it was also necessary to work at an international level on the issue.

"It is actually Britain who has been working with Germany and France to get those rules on the international table," he said.

But he also warned against "pricing Britain out of the world economy.", adding that "if we make our taxes less competitive that will just mean more companies stay out of Britain".

The PAC report is expected to be critical of the current way in which multinational firms used UK tax legislation.

In November the committee took evidence from executives from Starbucks, Google and Amazon over the amount of tax the companies have paid in the UK.

After the hearings, PAC chair Margaret Hodge MP said: "One of our concerns is that the ability of global companies to choose where to they put their costs and their profits gives them an unfair tax advantage that damages UK-based businesses,"


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