Accountancy Age: John Hood reacts to Fair Tax Mark Poll 2020

The Fair Tax Mark Poll 2020 revealed that Brits are asking businesses to display transparency and a sense of duty to society. John Hood said: “The colossal sums paid out by the Exchequer to support staff on furlough has reinforced how important it is that businesses contribute by paying the correct amount of tax in the countries in which they are based.” Additionally, Hood commented: “Some businesses have decided to repay the furlough payments that they have received as their businesses have not been as adversely affected as they originally thought. This is in spite of the fact that they might technically be entitled to the funds.”

“Multinational companies will legally plan their business structure to ensure that they minimise their tax liabilities,” Hood said. “In some cases, this means that despite the business generating significant income and taxable profits, the tax paid is legally kept to the absolute minimum by using complex financial arrangements. The Coronavirus crisis has generated a sense of unity in the UK and there is an expectation that businesses that survive the crisis should contribute their fair share of taxes to the Exchequer to repay the debt. There is already a requirement for multinational companies to report activities, profits and taxes on a country-by-country basis. It is essential that taxpayers feel that small businesses are able to compete on a level playing field.”

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