UK taxman admits Government powerless to force multinationals to declare profits
Posted in: Government & Policy at 06/11/2012 23:00
The Government is powerless to stop large multi-national companies like Starbucks and Google from paying almost no tax on their profits in this country, Britain's most senior tax official admitted today.
Lin Homer, Permanent Secretary of Her Majesty's Revenue and Customs, told MPs the Government was currently unable to prevent big international corporations from declaring their profits in foreign countries with tiny tax rates - even if they made those profits in this country.
But within minutes of making the admission the Chancellor George Osborne announced that he was working with Germany in a concerted international attempt to address multinational tax evasion.