HMRC: ongoing corporation tax crackdown is an ‘effective’ success

The ongoing crackdown on corporation tax is proving to be an ‘effective’ success, according to HM Revenue and Customs (HMRC).

HMRC claims that by placing an increasing number of large firms under “an exceptional level of scrutiny,” it is winning the war against corporation tax avoidance and evasion.

“We focus our resources on those businesses we think least likely to be playing by the rules, spending much less time with the majority who are open and transparent with us,” said an HMRC spokesman.

HMRC also claimed that it had “over two thirds of the UK’s 800 largest businesses under active investigation at any one time,” despite the fact that a typical investigation has been found to take in excess of 12 months.

A number of leading experts have praised HMRC’s clampdown on large firms’ manipulation of transfer pricing methods.