Britons call on Chancellor George Osborne to shame ‘tax cheat’ firms

Demands: Chancellor George Osbourne is being urged to shame corporate giants who 'cheat' the tax system
Jonathan Brady/PA Wire
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Britons today demanded that George Osborne publicly shame corporate giants seen by many as cheating the country out of millions in tax.

More than 80 per cent of adults called on the Chancellor to set up a public register showing whether multinational firms are paying UK taxes.

The overwhelming finding in an exclusive poll for the Evening Standard piled pressure on Mr Osborne to take tougher action against companies accused of not paying their fair share of tax in Britain.

It was published as he came under fire over an alleged “sweetheart” deal with Google for it to pay £130 million in tax after an investigation by Revenue and Customs into a 10-year period.

A public register would lay bare which companies, including some brazenly trading on their Britishness, are not paying UK corporation tax.

Shedding such light on their tax affairs would allow consumers to decide whether to buy their products — or boycott them if they appear to be diverting tax liabilities to countries such as Luxembourg to lower their bills.

The survey by BMG Research found that 84 per cent of Britons believe multi-national firms operating in the UK should be forced to publicly declare where they pay their taxes. Eighty-five per cent urged the Chancellor to set up a public register showing whether the firms are paying their taxes here.

People aged over 54 appeared the most angered by the tax conduct of big business. More than 90 per cent called for the firms to publicly reveal if they pay taxes in the UK and also backed a register.

“The findings set a new low in terms of trust between Britons and multi-nationals,” said Michael Turner, research director at BMG Research. “It also appears that they don’t trust government enough to get a grip with the corporate tax-avoiders. A public register, it seems, might empower consumers themselves to force firms to play fair.”

Poll: A total of 84 per cent of people said George Osborne should set up a register to show if companies pay tax

Making companies be more open about their tax affairs is backed by some Tory and Labour MPs.

Conservative Nigel Mills urged Treasury minister David Gauke in the Commons yesterday to make them publish their tax returns “so that we can all see how much tax they are declaring and how they got from their cash profit to that tax bill”.

Mr Gauke insisted that the UK’s position on taxpayer confidentiality was the “mainstream approach” adopted by many countries.

Labour MP Andrew Gwynne responded: “These are companies, not individuals, so the confidentiality excuse does not wash with me.”

Mr Gauke warned that ditching the confidentiality arrangements could make Britain a less attractive place for firms to do business.

Starbucks, together with Amazon and Google, were taken to task by the Commons public accounts committee in November 2012 over their tax payments in the UK. All three firms denied any wrongdoing and insisted they were meeting their UK tax obligations.

However, the following month the coffee shop giant agreed to pay around £20 million more in tax after facing a customers’ boycott sparked by the controversy.

The row reignited this week after the Chancellor trumpeted that the deal with Google was a “major success” for the taxman.

A Google spokesman said: “After a six-year audit by the tax authority we are paying the amount of tax that HMRC agrees we should pay. Governments make tax law, the tax authorities enforce the law and Google complies with the law.”

BMG Research interviewed 1,437 adults between January 21 and 25, before the latest row over Google’s tax affairs erupted.

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