UK tax authorities failing to tackle corporate tax avoidance

A new report by the House of Commons Public Accounts Committee (PAC) has accused the British tax authorities (HMRC) of failing to pursue large companies’ tax avoidance scams.

According to The Independent, the report criticises HMRC for being enthusiastic in pursuing smaller companies and individuals, while allowing larger companies to use ‘aggressive tax avoidance schemes’ to minimise their tax bill.

Margaret Hodge, chair of the PAC said:

‘HMRC holds back from using the full range of sanctions at its disposal. It pursues tax owed by the smaller business but seems to lose its nerve when it comes to mounting prosecutions against multinational corporations.'

Last year Professor Pat Carlen argued in the Centre's 2012 Eve Saville lecture that the criminal justice system disproportionately targeted poor lawbreakers while failing to address the harm caused by more powerful individuals and organisations.

A summary of Pat Carlen's argument can be read here.