Shadow Business Secretary wants companies to show us their tax bills

Shadow Business Secretary wants companies to show us their tax bills

Shadow Business Secretary, Chuka Umunna has suggested that companies should be compelled to reveal their tax bills – and that it should be done in such a way that we don’t all need a degree in accountancy to understand them.

Umunna’s proposals have come after the controversies of a number of large companies and their tax-avoiding acrobatics has come to light. These include a ‘sweetheart’ deal made with the international bank, Goldman Sachs, and the disclosure that Vodafone offset its capital expenditure against its tax bill, which means that they paid no UK corporation tax.

Vodafone has also been accused of wanting to acquire Cable & Wireless Worldwide at a cost of £1.1bn because of its tax liabilities – an accusation that they deny.

Umunna acknowledges that it is a minority of businesses that are damaging the reputation of the majority but feels that there is too much at stake to do nothing.