UK Companies Avoiding Tax Payments

Tue, 28 Aug 2007

Nearly a third of the UK’s 700 larfest companies do not pay tax, new research has revealed.

A report by The NAO (National Audit Office), which scrutinises public spending on behalf of Parliament, showed the stunning fact that 30 per cent of the 700 major companies in the UK do not pay a single penny of corporation tax, with a further 30 per cent paying less than £10 million each.

The alarming revelations are set to raise the pressure on private equity groups and multinationals, who are able to dramatically reduce the tax they owe by claiming interest relief on debt or by using intra-group loans .

Other reasons believed to be behind the low tax bills include low profitability, penison fund contributors and claiming tax losses.

However, the research from The NAO did acknowledge that the large businesses paid more than half (54 per cent) of the UK's corporation tax takings - £24.4 billion in corportation tax in 2005/2006.
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