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Delving into UK tax affairs of big companies

2 November 2012 Last updated at 12:31 GMT

In these difficult economic times one of the big priorities at the Treasury has been to crack down on those not paying or avoiding tax, but for many people the scandal is not what is illegal it is what is permitted under the law.

Research carried out by BBC Newsnight seems to show that some of the world's biggest companies, including Coca Cola, Intel and Kraft, apparently make massive profits in Britain but in some cases could pay as little as 2% tax, while smaller British companies have been paying corporation tax at 26%.

There is nothing illegal in what the big companies are doing, but that is the point, as Newsnight's Joe Lynam reports.