HMRC accused of being too cosy with big firms who want to avoid tax

26 April 2013

tax The Commons Public Accounts Committee have been looking at our beloved HMRC and have said that they're "very concerned" at the way the "big four" firms (Deloitte, Ernst and Young, KPMG, and PwC) were able to enjoy tax loopholes using "insider knowledge" from staff seconded to the Treasury to help people avoid taxes.

Committee chairman Margaret Hodge said the practice is a "ridiculous conflict of interest" which should be banned, adding: "The large accountancy firms are in a powerful position in the tax world and have an unhealthily cosy relationship with government."

The committee said: "Through their work in advising government on changes to legislation they have a detailed knowledge of UK tax law, and the insight to identify loopholes in new legislation quickly."

For example, KPMG's staff advised on the development of "controlled foreign company" and "patent box" rules, followed up by a marketing brochure highlighting the role they had played, which according to the committee, suggested the legislation represented a business opportunity to reduce UK tax.

"We have seen what look like cases of poacher, turned gamekeeper, turned poacher again, whereby individuals who advise government go back to their firms and advise their clients on how they can use those laws to reduce the amount of tax they pay," it said. "We are very concerned by the way that the four firms appear to use their insider knowledge of legislation to sell clients advice on how to use those rules to pay less tax."

How's about that then? The tax office and government in cahoots with big companies regarding tax avoidance! Next we'll be getting told about politicians themselves with offshore interested and stakeholdings in companies that will benefit from the destruction of the NHS and the like!



  • PJH
    Perhaps Ms. Hodge's time on the PAC would be better spent looking at the use of trusts to hide inheritance from HMRC. Oh - won't happen; never mind.
  • shiftynifty
    Another statement released from the university of stating the bleedin obvious...having worked for one of the big four....this is rife
  • Zleet
    Smoke and mirrors. Point at someone and call them a villain hoping nobody notices you. Inevitably these will be the schemes followed by those not in the old money clique in Whitehall as they will be protected.

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