Large businesses 'avoid taxes'

News Article - Tuesday, August 28, 2007

filed under: Business

A new report has revealed that approximately one-third of the UK's 700 largest companies did not pay corporation tax in 2005-06.

The study conducted by the National Audit Office - based upon the tax revenues raised by HM Revenue & Customs - found that 30 per cent of businesses each paid under £10 million in tax, the Financial Times (FT) reports.

According to the newspaper, the audit office stated that 50 of the businesses paid 67 per cent of the tax, while a further 220 did not pay any.

Bill Dodwell of Deloitte said that the figures illustrate the "giant contribution" made by smaller firms in the UK.

"It is probably because many are less international and so have different planning opportunities," he told the FT.

However, the Western Mail recently reported that the government recorded a surplus in July, after seeing an eight per cent increase in corporation tax revenues.

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