According to the National Audit Office of the largest 700 businesses, “fifty businesses (seven per cent) contributed 67 per cent of the total Corporation Tax raised in 2005-06…a reflection of the small number of very large businesses within the Large Business Service. Around 220 businesses paid no Corporation Tax in 2005-06 and a further 210 businesses each paid less than £10 million.” (p10)
However this will not be a spur to collect more tax by the Inland Revenue, because it is all perfectly legal (as I explain in Corporate Truth).
The root of the problem is the way the UK tax system avoids (or should that be evades) matching tax liability to the place where economic value is added. So – did those 220 businesses really contribute nothing to the UK economy?
OK. But does it matter? Well, only if you like the idea of a free market system…