A new report from KPMG states that UK businesses need to take efforts to be more transparent with their tax practices. Stricter tax policies are being enacted throughout the country which many companies are reluctant to accept.
KPMG recently conducted a poll of nearly 60 executives from some of the largest corporations in the country. The auditor said that nearly half of executives are against the General Anti-Abuse Rule that was proposed in September. The auditor said that the regulation will likely be enacted despite corporate lobbying efforts.
According to Jane McCormick, the head of KPMG’s tax division, increased transparency will also provide a number of valuable data on the impact firms have on the UK economy. The data they report will also help government officials determine what role these firms play in creating new jobs and assist the economy in other ways.
The General Anti-Abuse Rule was first proposed by Chancellor George Osbourne when it became evident that many firms were using accounts overseas to hide income and avoid paying taxes. Some groups have protested that the legislation would curtail growth and job creation throughout the country. However, Osbourne’s administration has said that it is adamant about ending abusive tax practices in the United Kingdom.