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Daily Digit: UK tax avoidance

Monday, January 21, 2013 - 00:47

Jan.21 - The UK tax authority says the amount of tax that big companies may have underpaid by using artificial intercompany transactions to inappropriately reduce taxable profits rose 48 percent last year. Sonia Legg reports.

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Today's daily digit is 48 percent - that's the increase in the amount of tax big companies may have underpaid in the UK. The figure comes at a time when there's growing public anger over tax avoidance by companies like Starbucks. The UK tax authority has revealed that in July last year it was owed an estimated one billion pounds - that's almost double the previous year's figure of 680 million. Though it denies changing its approach in response to public opinion. But British law makers are considering ways to tackle the issue. And some believe the increase is evidence UK authorities are trying to get tough with big companies. The data comes from around 800 firms and tax campaigners say it's generally considered to be a conservative estimate.

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Daily Digit: UK tax avoidance

Monday, January 21, 2013 - 00:47