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Margaret Hodge: 'It is now easier to pay less tax'

19 December 2013 Last updated at 11:48 GMT

A senior politician has accused the tax authorities of losing their nerve while chasing multinational companies.

Margaret Hodge, who chairs the Public Accounts Committee, told BBC Radio 5 live's Breakfast: "It is now easier to pay less tax in the UK."

"Far from closing the loopholes and far from bringing in legislation which would make it more difficult for the big corporations to avoid tax, the HMRC has loosened the regime."

Revenue and Customs rejected the findings and accused the committee of the "selective and misleading use of figures."