House of Commons Public Accounts Committee has published a report that accuses the multinational professional services network PricewaterhouseCoopers (PwC) of promoting tax dodge by its multinational clients in Luxembourg.
The committee has alleged that tax arrangements PwC promoted in Luxembourg bear all the characteristics of a mass-marketed tax avoidance scheme, citing the example of Shire Pharmaceuticals, which used intra-company loans to divert profits to Luxembourg to take advantage of lower corporate tax rates.
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PwC’s advices designed to avoid tax has been permitted by its own code of conduct which made it ethical under the company norms calling for active intervention by the Government in regulating the tax industry, observed Public Accounts Committee report.
Public Accounts Committee chair Margaret Hodge said: "We believe there is no clarity about the boundary between acceptable tax planning and aggressive tax avoidance."
PwC said in a statement: "We stand by the evidence we gave the Public Accounts Committee and disagree with its conclusions about the work we do. But we recognize we need to do more to explain the positive role we play in the tax system and in helping businesses to operate successfully."
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