The Commons Public Accounts Committee has urged a ban on external accountants inside the government in an effort to prevent taxation loopholes being passed on. HMRC is thus pitted against the seemingly over-powering strength of the large accountancy firms who are well set-up to hand out advice to their clients.
However HMRC also said they are winning the battle against tax avoidance while, in it’s latest report the committee focusses on accountancy companies after previously highlighting the tax avoidance practices of large private companies over their corporation tax payments.
Public Accounts Committee states ‘conflict of interest’
Margaret Hodge Chairwoman of the Commons Public Accounts Committee has stated that a conflict of interest is the best way to describe the now common practice of private accountancy firms being employed by the public sector.
An example of tax avoidance advice offered to the large multi-national companies is to move profits overseas but the large accountancy firms say they are helping clients pay the tax that is due.
More about the Commons Public Accounts Committee
Read more about Ricky Steedman’s involvement with Margaret Hodge in our previous article: Parliamentary Hearing on Tax Avoidance with the Big Four.