Public Accounts Committee

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On 31 January 2013, MPs took evidence from the head of tax at the major accountancy firms - KPMG, Deloitte, PWC and Ernst & Young - on tax avoidance.

The chair of the committee, Margaret Hodge MP, has previously stated that accountancy firms that help multinational businesses to avoid tax should be banned from working for the government.

MPs have been investigating Starbucks and other large organisations that use special arrangements to cut their tax bills.

Mrs Hodge has said there is a particular onus on the "big four" accountancy firms to act responsibly.

Starbucks has stated that it is planning to change the way it operated, so that it would end up paying corporation tax in the UK.

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