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Clamp down on tax avoidance

25.07.13

The Organisation for Economic Co-Operation and Development are planning on modernising international tax law in order to prevent large multinational companies such as Starbucks, Amazon and Apple from vastly minimising their respective tax bills.

Finance Ministers within G20 met in Moscow, Russia in a bid to develop rules and legislations which would prevent companies like these from avoiding paying the full amount of tax in the future.

The 40-page report compiled at the meeting outlines an 'ambitious and comprehensive' plan into tackling the problem and details how governments will improve the amount of revenue collected from the companies who've been paying less than expected.

"International tax rules, many of them dating from the 1920s, ensure that businesses don't pay taxes in two countries - double taxation," said OECD secretary-general Angel Gurria.

The UK government have openly criticised companies such as Google for their tax affairs, and it was only a matter of time before they started to close the loopholes which allow them to pay minimal tax on huge profits.

Despite high profit margins in the UK, the large, multi-national companies pay a tiny amount of tax by filtering their profits through establishments set up outside of the UK such as the Republic of Ireland.

Amidst all this talk surrounding off-shore services and avoiding tax, Consort would like to reassure you that our services are completely transparent and we offer our contractors a simple service in which they can retain their self-employed status whilst receiving the benefits of subcontracting. Our procedures have been developed following consultation with HMRC. For more information on the report, click here.

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