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HMRC fears big companies underpaid £35.8bn in tax last year

Big companies underpaid £35.8bn in tax last year, HM Revenue & Customs fears


Big companies underpaid £35.8billion in tax last year, HM Revenue & Customs fears. 

This is a jump of £1billion on the previous year, according to analysis from law firm Pinsent Masons, and the sixth year in a row that the shortfall has increased. 

Scrutiny: Multinationals use several methods to artificially lower their UK tax bill

Multinationals use several methods to artificially lower their UK tax bill, such as classifying some employees as self-employed contractors. They also use transfer pricing – shifting costs and income across countries. 

Base erosion – shifting profits from UK sales to lower-tax countries – is also employed. 

Transfer pricing and base erosion account for more £9billion lost tax income. 

Steven Porter, at Pinsent Masons, said: ‘Multinationals underpaying tax is one of the biggest areas of concern for HMRC. The Large Business Directorate is particularly effective at bringing in underpaid tax it identifies.

Read more at DailyMail.co.uk