Action must be taken on tax avoidance, PM says

Prime minister David Cameron has spoken out about Corporate Tax avoidance, saying that all companies must contribute their fair share.

While not mentioning any specific cases of tax avoidance, Mr Cameron said earlier today (October 24th) that action must be taken to ensure firms of all sizes are paying the right level of levies.

He said that he is "not happy with the current situation", adding that HM Revenue and Customs must look at what it can do to improve the system.

"This is an international problem that all countries are struggling with, about how to make sure that companies pay tax in an appropriate way," he told Parliament.

"We do need to make sure we are encouraging these businesses to invest in our country, as they are, but they should be paying fair taxes as well."

Meanwhile, the Charted Institute of Taxation revealed that small businesses that are struggling to manage their tax administration should seek specialist help.

Posted by Thomas Fletcher

Last updated: 24th October 2012