Firms 'should discuss offshore operations with HMRC'

News Article - 23 July 2007
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Companies in the UK with divisions abroad should ensure that they engage in discussion with HM Revenue & Customs (HMRC) ahead of the finalisation of new taxation proposals, it has been urged.

Audit firm KPMG has made the recommendation on the back of concern that businesses are dragging their feet about responding to a Treasury discussion paper which sets out the proposals in relation to their offshore activities, reports AccountancyAge.com.

Sue Bonney, head of UK tax at KPMG, said: "Our plea is to respond to it and engage in the debate and shape what finally comes out."

She added that firms failing to engage with the authorities could put business on "shaky ground" if they choose to complain about the reforms having not added their input before they were finalised.

According to government figures, between 2000 and 2003, about eight to ten per cent of companies were found to offshore some of their services.

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