UK lawmakers seek end to corporate tax avoidance

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Associated Press

Posted on December 3, 2012 at 1:04 AM

Updated Monday, Dec 3 at 1:05 AM

LONDON (AP) — A committee of British lawmakers says the government should "get a grip" and clamp down on multinational corporations that exploit tax laws to move profits generated in Britain to offshore domains.

The committee says major multinationals including Starbucks, Google and Amazon are guilty of immoral tax avoidance. Starbucks announced it is reviewing its British tax practices in a bid to restore public trust.

Parliament's public accounts committee says some multinationals pay little or no corporation tax in the U.K. Labour legislator Margaret Hodge, who chairs the all-party committee, calls it "outrageous and an insult to British businesses and individuals who pay their fair share."

As the British economy splutters, public anger has grown against companies that pay little tax while making large profits.

Companies operating in Europe can base themselves in any of the 27 European Union nations to take advantage of tax benefits.

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