ACS

Clamping down on tax avoidance practiced by large companies should form a key part of rebalancing the tax system to make it fairer, Liberal Democrat Leader, Nick Clegg said at the ACS Heart of the Community seminar held in London yesterday.

In his speech, Nick Clegg set out how tax cuts for people on low and middle-incomes can in part be paid for by closing loopholes currently enjoyed by big corporations.

He said that it is wrong that some large supermarkets avoid paying taxes through complex off-shore arrangements, arguing that the billions of pounds of lost revenue should be used to fund tax cuts for struggling families: “The supermarkets don’t just have the planning system working in their favour, they’ve also got the tax man eating out of the palm of their hands.

“They say that every little helps but then set up hugely complex tax avoidance schemes. They are jumping through loophole after loophole while the Chancellor sits idly by as ordinary families and small businesses struggle to make ends meet.

“Tax avoidance in this country isn’t small scale. It’s a slick and highly lucrative industry. An estimated £2bn is lost to this country every year in unpaid Stamp Duty Land Tax.

“Just look at what Tesco, our biggest retailer, is able to do. Putting in place structures to save millions on Stamp Duty related taxes. It may be legal but it’s wrong.

“The Liberal Democrats are absolutely committed to calling time on Labour’s tax loopholes. And we’ll make the rich and the powerful pay their fair share, to give the money back to people who need it most.”