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Largest firms 'paid quarter of UK CT take'

26 February 2009
Categories: News , Companies
Study attributes £11bn to 100 Group in year to March '08

Britain’s 100 largest companies paid £11 billion in corporation tax in the year to 31 March 2008, according to the fourth annual Total Tax Survey.

The figure represents almost a quarter of the Government’s total CT take, claims the study that was carried out by PricewaterhouseCoopers on behalf of the 100 Group, which represents the finance directors of the country’s biggest firms.

The newly published results report that for each £1 paid in CT, the companies paid £1.14 in other taxes (to a total of £12.9 billion) and collected a further £3.88 of levies on behalf of the Government (to a total of £42.6 billion).

The absolute level of total taxes paid by 100 Group companies, however, fell 12.4% year-on-year – but employment taxes paid and collected per employee increased to £19,729, and total employment taxes increased to £16.2 billion.

The Total Tax Survey claims that firms’ tax departments spent most time on compliance (40%), while 54% of the companies’ total tax compliance costs related to CT.

PwC tax partner Susan Symons said: ‘This data is valuable evidence in the debate on how to improve the competitiveness of the tax system.

‘The drop in corporation tax paid by participants highlights the sensitivity of corporation tax to competition and economic change.

‘Next year's survey findings are likely to show the impact of the global economic downturn, with profits expected to drop in a number of sectors.’

Ashley Almanza, chairman of the 100 Group, remarked: ‘Taxation levels have an important impact on our ability to compete in a fiercely competitive global economy. The ideal is to encourage economic activity and thereby grow overall tax revenues.

‘The predictability and competitiveness of our tax system is a prime concern for large UK businesses, as they typically make long term investments. We welcome any assurance that there will not be significant changes to the tax system which would drive costs higher.’

Categories: News , Companies
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