Wednesday 5th December 2012
Commenting on today’s announcement of a consultation by the Cabinet Office and HMRC on using the public procurement process to deter tax avoidance and evasion by companies involved in tendering for public contracts, Chris Morgan, head of tax policy at KPMG in the UK, said:
“The implication of today’s announcement is that companies the Government sees as playing by the rules on tax have a much higher chance of being awarded Government contracts. So those tendering for government business will invariably have a tougher hurdle to pass in respect of demonstrating their tax compliance and these proposals may result in a more formal certification process for all organisations involved with government entities.
“There were no details announced today other than there is to be a consultation with a view to measures being introduced from 1 April 2013. It is clear that today's announcement is further evidence of the ever increasing trend towards greater tax transparency within the corporate environment.”
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