Crackdown on corporate tax avoidance

News Article - 28 February 2008
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An in-depth investigation into the issue of corporate tax avoidance is needed, according to a number of MPs and Lords.

The Guardian reports that following their own expose on Tesco's offshore tax havens and other tax evasion techniques, MPs have become concerned about the impact of such tactics on the economy.

Labour MP John McFall, chair of the Treasury select committee, told the newspaper that a report on corporate tax avoidance will be published on Monday, examining the role of offshore centres in UK business.

Although a statement by Tesco explained that the firm has an "open relationship" with authorities, Peter Luff, Conservative chairman of the all party business and enterprise select committee claimed that although its actions may be legal, they were negatively affecting the UK as a whole.

"If they are squeezing out small and medium-sized enterprises through these kind of smart tax procedures, then ordinary family businesses up and down the country probably feel they are not competing on the same rules," said Mr Luff.

For smaller firms, online accounting software packages can assist in meeting the end-of-the-tax-year deadline, a Washington Post blog.

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