2 Jul 2013
Tory backbencher and Tax Lawyer, Charlie Elphicke has singled out a number of energy and utility firms for not paying appropriate corporation tax and denying the Treasury up to £1bn by exploiting the interest deduction system.
The MP said in the House of Commons last week that he wanted “a system where tax avoiding water and utility companies are made to give a rebate to hard-pressed customers who have been facing increased bills in recent years. Southern Water, Yorkshire Water, EDF Energy and RWE NPower are amongst those singled out, specifically accusing EDF and NPower of paying ‘no tax whatsoever’. EDF defended its tax record and hit back in a bid to make clear that it paid £116m in corporation tax last year and £156m for 2011. In a statement, EDF said it is proud of its contributions to the UK economy. The criticism comes amid government negotiations with EDF to build a new multi-million pound power station at Hinkley Point in Somerset.
Treasury Minister David Gauke said “HMRC secured £8bn of additional revenues from large companies through tax compliance work in 2012-13 and more than £23bn over three years. HMRC does have robust methods in place to ensure that tax compliance by the biggest businesses occurs and the numbers support that.”