Now, there was a huge kerfuffle earlier this year when it started to be revealed how many
large multinational companies were using all kinds of loopholes to avoid paying taxes -
usually a case of doing business in one country but paying tax in another with much lower
tax rates. It was an outcry, for example, here in the UK that the likes of Google, Starbucks, Amazon and Npower, were able to make huge savings by paying their taxes elsewhere. Well the British government has just responded by coming up with something called the general anti-abuse rule. The government says it should prevent between $60 and $80 million a year haemorrhaging away. But its critics say the Exchequer is currently losing around $35 billion a year. Well, Nicola Smith is through the head of the Economic and Social Affairs with the
Britain's trade union movement at the TUC and I asked her what's wrong with the
government's new rules. We were very optimistic when we heard that the government was
going to introduce this bill because you would think from this end of it that it would be a new rule that would prevent tax avoidance and tax abuse in the UK. But actually as more
information about the rule has emerged, it's become clear that it's extremely weak and will in fact only tackle about 1% of tax avoidance in the UK at best.
large multinational companies were using all kinds of loopholes to avoid paying taxes -
usually a case of doing business in one country but paying tax in another with much lower
tax rates. It was an outcry, for example, here in the UK that the likes of Google, Starbucks, Amazon and Npower, were able to make huge savings by paying their taxes elsewhere. Well the British government has just responded by coming up with something called the general anti-abuse rule. The government says it should prevent between $60 and $80 million a year haemorrhaging away. But its critics say the Exchequer is currently losing around $35 billion a year. Well, Nicola Smith is through the head of the Economic and Social Affairs with the
Britain's trade union movement at the TUC and I asked her what's wrong with the
government's new rules. We were very optimistic when we heard that the government was
going to introduce this bill because you would think from this end of it that it would be a new rule that would prevent tax avoidance and tax abuse in the UK. But actually as more
information about the rule has emerged, it's become clear that it's extremely weak and will in fact only tackle about 1% of tax avoidance in the UK at best.