Osborne's tough tax talk falls short
But Osborne also claims he wants to make the UK's super-competitive. Can he do both?%VIRTUAL-SkimlinksPromo%
With difficulty. Earlier in the week Osborne told the BBC that hiking taxation will mean more large companies avoid investing in the UK. Meanwhile the Public Accounts Committee complain HMRC is too soft on big business. It's a tricky balance: acting against corporate tax evasion while pushing for more overseas jobs and investment.
Lawyer and tax expert Richard Jordan says much of the current UK corporate tax mess is because too many British politicians are operating at the very limits of their knowledge on business - and tax.
"If MPs are unhappy, then they should change the law to make the corporations pay more tax. The problem is that, unlike HMRC employees, MPs today have rarely worked in the real world of commerce which means they lack any commercial common sense."
Little understandingHe adds: "We need MPs who truly understand how business works. HMRC employees have a lonely and thankless job to do, but they do it well. It is disappointing to see them publicly undermined and criticised by some MPs in this way."
Yesterday War on Want claimed the Coalition has rejected the opportunity to recover up to £5.5 billion a year from overseas companies via a General Anti-Avoidance Principle, instead opting only to target 'artificial and abusive' tax avoidance through an 'anti-abuse' rule.
Meanwhile it's likely Osborne will introduce new measures tomorrow to force non-UK residents to pay capital gains tax on residential property. There could be annual charges of £15,000 on company-owned homes worth between £2 million and £5 million while company-owned property worth £20 million ore more could see fees of £140,000 slapped on it.
Shop aroundFor consumers, the moral is shop around - and shop British. "Sainsbury's," said the company in an emailed statement to AOL Money, "is not an international company so all of our trading profit is subject to corporate tax in the UK. Consumers can elect which companies they shop with and, if they don't believe a company is contributing to our society, can vote with their wallet."
John Lewis and Morrisons are also pushing for a more even playing field between British domestic businesses and multinational competitors, like Amazon.
You can read the Public Accounts Committee findings on HMRC here.
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