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9am lowdown: Corporates coughing up more

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27th Nov 2014
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A survey of the UK’s largest companies shows a marginal increase in taxes borne despite the recent reductions in the rate of corporation tax, PwC has reported.

PwC: Corporates coughing up more in tax

The taxes borne by and collected by 100 Group companies increased by £2bn to £80bn in 2014, PwC noted in its annual Total Tax Contribution report. The increase was driven mainly by higher employment and wages that counteracted a 7.4% reduction in corporation tax payments driven by  lower tax receipts from North Sea companies.

“There has been a continuing shift in how the tax cost is made-up. For every £1 of corporation tax paid, 100 Group firms now bear £3.27 in other taxes such as employers’ NIC and business rates,” the firm said.

The report comes hot on the heels of the firm's annual tax league table study, which saw the UK drop two places to 16th. For more on this topic, also see Luxembourg leak reignites corporate tax debate.

While PwC is keen to show that large corporations are good citizens, the stance of high profile individuals continues to fascinate the mainstream media...

* * *

Angelina Jolie joins mansion tax row

Hollywood A-lister Angelina Jolie has said she would like to move to the UK but may be put off by Labour's proposed mansion tax on houses worth more than £2m.

She is the latest to join in the debate after Ed Miliband got a pasting from singer Myleene Klass on the issue last week.

Jolie made the comments on Channel 4 News where she was told by presenter Jon Snow that expensive houses were going to get more expensive.

He then asked her if a mansion tax would put her off buying one in the UK.

She replied: “I’m quite responsible about money. That could put me off”

* * *

Labour politicians challenge Sol Campbell

Meanwhile, closer to home, former footballer Sol Campbell has been challenged by Labour politicians after he claimed he could not afford to pay the mansion tax.

Campbell told BBC Daily Politics the tax was “flawed and not fair at all” and would hurt people who were “a way away from London and oligarchs”. He added that Labour was “punishing me for sticking out my neck and going for it”

Campbell clashed with Labour MP Owen Smith over the tax, who said his party was only asking people like Campbell to pay his fair share.

* * *

BDO frustrated by EU audit reform creep

Europe’s increasingly byzantine implementation process for this year’s audit market reforms is proving frustrating for BDO as it pushes for a place at the audit top table.

After posting 7% annual growth to revenue of nearly $7bn, BDO global chief executive told Reuters that national variations in how and when the EU audit reforms were being applied were a “complete nightmare” for banks and insurance companies. And audit firms like BDO, who are hoping to gain work from enforced audit re-tendering.

“When we look at the very big conglomerates, they are still heavily dominated by the Big Four and it will take years to see a wider diversity of audit firms,” van Roekel said.

So, which of these issues matters most to ordinary accountants? Do celebrity tax stories raise your blood pressure? Or is it the changing balance between corporate and individual tax contributions?  Or does the future of audit concern you - have audits become something that only matter to corporations, investors and big audit firms?

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