Hidden levies on top of corporation tax double FTSE 100's total burden.

Position:Methods of business taxes - Brief article
 
FREE EXCERPT

PricewaterhouseCoopers is calling for a standardised method of calculating the true amount of business taxes paid by individual companies. A recent study that it conducted with members of the Hundred Group of FTSE-100 finance directors revealed that the total tax paid by blue-chip firms is twice the size of their corporation tax burden once other charges are included.

Using a "total tax contribution" (TTC) framework, the researchers found that the 100 companies paid a combined total of 9bn [pounds sterling] in corporation tax in 2004-05. But, when 18 other levies were included, such as national insurance contributions, local business rates and irrecoverable VAT, this sum doubled to 18bn [pounds sterling].

John Whiting, a tax partner at PwC, told Financial Management that the TTC framework had been developed to provide a greater understanding of all the levies imposed on business. He denied that it was a subtle way of persuading the government to reduce the tax burden. "We haven't drawn any...

To continue reading

REQUEST YOUR TRIAL