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PAC: Government slack on stopping tax avoidance

PAC: Government slack on stopping tax avoidance

According to a report released by Public Accounts Committee, the firms that supply the government engage in tax avoidance arrangements. The Treasury and the Cabinet is accused of failure in obtaining best value for taxpayers from work that it contracts out to the private companies. The committee pointed out that the government departments are not using its buying power in order to ensure that the suppliers, especially ones who belong to ICT or Information and Communication Technology industry pay fair share of tax on profits secured of business activity in UK. Inspite of criticisms, the committee recognised the progress that has already been made. The government has in fact centralised procurement of services and goods bought by all departments like travel and energy on which the central government has spent an estimated £7.5bn in 2011/12. PAC published four different reports, integration across Government, improving government procurement, early action and Civil Service reform. Labour MP Margaret Hodge said that the central message emerging out of the reports is that the Treasury and the Cabinet Office must be stronger in case they intend to exercise corporate control over spending in departments as well as avail long term sustainable savings for the taxpayers.