Accountancy firm PricewaterhouseCoopers has been accused of being at the centre of ‘industrial scale’ tax evasion by a committee of MPs amidst ongoing investigation into the tax affairs of multinational organisations.
PwC is believed by the Public Accounts Committee to have aided and abetted hundreds of British firms minimise their corporation tax bills by establishing offices in Luxembourg, although the firm disagreed with the findings.
Citing 500 letters sent to Luxembourg officials on behalf of 300 global businesses committee chair Margaret Hodge, said: “We believe that PricewaterhouseCoopers's activities represent nothing short of the promotion of tax avoidance on an industrial scale.”
Although such activities are legal they have become increasingly socially unacceptable with the Archbishop of Canterbury calling for all companies to pay tax within the jurisdiction in which they earn the profits.
For its part PwC said it disagreed with the findings but did believe existing tax laws were ‘too complex’.