McDonnell will make big businesses publish tax returns
TAX-DODGING corporations will have nowhere to hide under a Corbyn-led government as Labour announces plans today to force big companies to publish their tax returns in full.
In a bid to end the “scourge” of corporate tax avoidance, Labour plans to change company law arguing that tax avoidance schemes rely on secrecy and complexity to enable big companies to “shirk their responsibilities.”
According to HMRC, the tax gap between what is collected and what is expected is around £36 billion.
But the PCS union, which represents most of the staff in HMRC, estimated in 2014 that the tax gap was £119.4bn and growing.
Wealth and hidden tax havens worldwide is estimated at a staggering £13 trillion.
Labour has argued that collecting just a fraction of this amount would end austerity.
Under the plans, firms with a turnover of more than £36m, a balance sheet over £18m or more than 250 employees would have to publish their tax returns.
Labour said the policy would expose any “sweetheart deals.”
Shadow chancellor John McDonnell said tax avoidance was a “scourge on society that company secrecy laws help facilitate, and the Tories have done nothing to tackle.”
He accused the Tories of running a “rigged economy for the super-rich and giant tax-dodgers.”