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Britain | ||
Accountant joins backlash against tax dodge attacks | ||
2013-01-28 | ||
One of the UK's top accountants has joined the business backlash against attacks on corporate tax avoidance by politicians, telling the authorities to change the law if they are unhappy with the ethics. Responding to calls for companies to "pay their fair share", Mark Otty, Ernst & Young's managing partner for Europe, Middle East and Africa, claimed a moral tax code would not work as companies had a duty to pay the lowest rate permitted. His intervention follows Starbucks' threat to suspend millions of pounds of planned investment in the UK if the attacks continue. Goldman Sachs chief executive Lloyd Blankfein has also warned that the row risks stigmatising "every right-thinking person who organises his or her affairs in a sensible way". Speaking at the World Economic Forum in Davos, Mr Otty told The Daily Telegraph: "The only way you can resolve this issue is through a legal code. I don't see how you can have any assessment on payments of tax other than what is in the statute. The simplest solution is to stop banging on about morality and change the law. "
Public anger has mounted at the way global companies such as Google, Starbucks and Amazon move profits from one country to another to lower their tax rate. While the behaviour is not illegal, MPs have called it "immoral".
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Posted by:lotp |