Corporation Tax Receipts Being Scrutinized
MPs pointed out that it was the responsibility of HMRC to see that everyone pays their tax. Margaret Hodge, chairperson of Public Accounts Committee that revenue and customs department need to be on their toes to check on such companies which avoid paying their taxes as non-payment is an insult to those who regularly and fairly pay taxes. This move would generate around 2 billion per annum for the Revenue and Customs departments. HMRC has retaliated by saying that it is working in parity with the tax laws of UK. And, foreign companies must also pay the corporation tax if they make profitable income in the country.
The report by the committee came as a response after Starbucks, Amazon and Google were questioned about payment of their corporation tax in November. Amazon asserted that it has paid all the concerned taxes in the areas in question. The money generated would be utilized for hiring more employees who would help to check avoidance and evasions for tax payments.
Margaret Hodge opined that corporation tax is being evaded when the need for revenue is the most. She added that HMRC was not clear enough with regard to enforcement of Corporation Tax. The escapism by multinationals is higher than always and HMRC, which should be determined to check on the tax system, but is showing leniency to work in this regard. HMRC must constantly check the tax system.
HMRC retaliated by saying that it has received around 29 billion in the last six years from big business houses and is efficiently behind those who deny paying their taxes. War on Want, a charitable firm has blamed the government for being hypocritical and is working towards rectifying tax avoidance. It has identified Amazon, Starbucks and Google as the ones who continue to run away from paying taxes.
A spokesperson for HMRC has highlighted that the firm takes into account the timely payment of taxes by the multinationals in conformity with the tax laws in UK and claims to have successfully reduced the cases of tax avoidance. He added that the firm has recovered 29 billion pounds in the last six years and continues to defy those businesses that avoid timely payment of taxes. It was stated that the facts always speak for themselves. The tax rate fixed by the parliament and wide economy defines the receipt of taxes. These receipts have gone down by 2 per cent in fiscal year 2011-12.
The report by the committee came as a response after Starbucks, Amazon and Google were questioned about payment of their corporation tax in November. Amazon asserted that it has paid all the concerned taxes in the areas in question. The money generated would be utilized for hiring more employees who would help to check avoidance and evasions for tax payments.
Margaret Hodge opined that corporation tax is being evaded when the need for revenue is the most. She added that HMRC was not clear enough with regard to enforcement of Corporation Tax. The escapism by multinationals is higher than always and HMRC, which should be determined to check on the tax system, but is showing leniency to work in this regard. HMRC must constantly check the tax system.
HMRC retaliated by saying that it has received around 29 billion in the last six years from big business houses and is efficiently behind those who deny paying their taxes. War on Want, a charitable firm has blamed the government for being hypocritical and is working towards rectifying tax avoidance. It has identified Amazon, Starbucks and Google as the ones who continue to run away from paying taxes.
A spokesperson for HMRC has highlighted that the firm takes into account the timely payment of taxes by the multinationals in conformity with the tax laws in UK and claims to have successfully reduced the cases of tax avoidance. He added that the firm has recovered 29 billion pounds in the last six years and continues to defy those businesses that avoid timely payment of taxes. It was stated that the facts always speak for themselves. The tax rate fixed by the parliament and wide economy defines the receipt of taxes. These receipts have gone down by 2 per cent in fiscal year 2011-12.
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