Thursday, 13 June 2013
Public pressure on corporate tax can work.
The good news is that public opinion is making several multinational companies adjust their tax avoidance plans. We should also note that Section 172 of the UK Companies Act 2006 requires directors to act in good faith in what is normally understood to be the business imperatives but also to have regard to : " the impact of the company's operations on the community" and " the desirability of the company maintaining a reputation for high standards of business conduct". So within existing law there is scope for HMRC to get a lot tougher with its approach & the Government could resource HMRC to allow it to do that whilst the much more long winded & difficult task of getting international agreement grinds on.