HMRC needs to think about new, tougher measures for businesses, which fail to pay tax in the UK. They are called upon to do it by MPs from the Public Accounts Committee. The current line raised some concerns, due to the recent tax avoidance schemes applied by major multinational companies, such as Amazon and Google, which have paid small tax to the UK, regardless of the huge turn over they have made.
As we have already announced, tax avoidance schemes seem to be very common among multinational companies. A great example is Starbucks for example. According to the researches they have made over #400m in the UK, however as they pay royalties to a sister branch in the Netherlands, for using the brand, they paid no corporation fee in the UK, despite the huge turnover.
After revealing the schemes, a number of other big companies have come under heavy fines. HMRC was criticised for failing to manage the case and ensure the companies pay what they are required to pay in the UK.
“These global companies are making money in the UK,” said Margaret Hodge, chairwoman of the Public Accounts Committee. “All we are saying is that if you have economic activities in the UK you are making profits and tax is payable on that.”
She says that the HMRC should be more “aggressive and assertive”, when it comes to fighting tax avoidance schemes, which might hurt the UK economics.
On the other hand, the HMRC replied back that all multinational companies with UK branches, pay the tax with accordance to the current laws.
Despite this, however, Chancellor George Osborne is set to announce details of a £154m fund intended to assist in dealing with tax issues relating to the affairs of large corporations and wealthier people.