Page last updated at 16:37 GMT, Wednesday, 5 December 2012

Public Accounts Committee

MPs continued their inquiry into tax avoidance schemes on 6 December 2012.

The committee has been investigating how big companies such as Starbucks, Google and Amazon pay so little corporation tax in Britain despite apparent huge earnings.

Despite having almost one-third of the UK coffee shop market, Starbucks has paid corporation tax only once in the UK the past 15 years.

Starbucks has said it is planning to change the way it operates so that it will end up paying corporation tax.

Margaret Hodge, the Labour chairman of the committee, has said accountancy firms which help multinational corporations aggressively avoid paying tax in the UK should be banned from tendering for lucrative government contracts.

Some estimates suggest tax avoidance could be costing the UK Treasury up to £100bn a year.

Witnesses before the panel will include Aiden James, director at Tax Trade; Patrick McKenna, chief executive at Ingenious Media; and the director of Future Capital Partners, Tim Levy.

The committee will then take evidence from HMRC's permanent secretary, Lin Homer and other Treasury officials.


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