Cable calls for fines on firms failing to disclose tax havens
Business secretary Vince Cable has launched an investigation into why penalties, including fines, have not been meted out to companies failing to disclose their subsidiaries based in tax havens.
'We must do the maximum possible to stop tax avoidance using powers that haven't yet been invoked,' he said.
Labour MP Chuka Umunna is expected to table Parliamentary questions this week on the issue after being concerned about the lack of disclosure by companies.
Under the Companies Act 2006, firms must confirm the location of subsidiaries to Companies House. It can fine directors failing to comply, but so far has not used this power.
The issue came to light after charity ActionAid complained to Companies House at the start of the year that 49 FTSE 100 companies were breaching this rule.
Financial Mail found that by last week, 27 of the companies had complied, revealing more than 1,000 tax havens between them.
Another 18 companies said they had filed a list of subsidiaries or were in the process of doing so, but records had yet to show this.
Miner ENRC, satellite provider Inmarsat, diagnostics giant Smith & Nephew and explorer Tullow Oil were the only companies that failed to respond to requests for information on their response.
Martin Hearson, policy adviser at ActionAid, said 'We want to see an informed debate about tax avoidance in the UK and in developing countries, and we're pleased that across Government the momentum is building for more corporate transparency.'
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