UK Water Companies Saving Millions Through Tax Avoidance

Six water companies in the UK are avoiding millions in tax by exploiting loopholes, an investigation by lobby group Corporate Watch has found

Some of Britain's biggest water companies are controversially using tax havens to avoid paying millions in UK tax, a new investigation claims today.

Six of them, including Northumbrian, Yorkshire and Thames, are accused of exploiting a loophole that wipes out tax due on billions of pounds of loans.

The arrangements have emerged as water regulator OFWAT announced last week that water bills would rise by 3.5pc to an average of £388-a-year per household.

Controversial schemes taken by big firms to slash their tax bills are the centre of attention at the moment after MPs slammed US giants like Google and Starbucks as 'immoral'.

The government has announced new plans to clamp down on firms who push their revenues abroad out of the grasp of the taxman. They will be prevented from winning lucrative Whitehall contracts.

Companies bidding for government contracts will have to provide details of their tax compliance history, including tax returns that have been judged incorrect, under the draft new rules announced yesterday.

Proposals to change the law come as water firms Northumbria, Yorkshire, Anglian, Thames, South Staffordshire and Sutton and East Surrey were thrust into the spotlight over their tax

Source: Daily Mail

Read More Related Content On This Topic - Click Here

Media

Taxonomy

• Pricing
• Paying Ability
• Governance & Planning