Yorkshire Water 'acts malevolently' over corporation tax

Related Stories

A water firm has been accused by an MP of using tax laws "malevolently" after paying no corporation tax in the past year - despite making £186m profits.

Yorkshire MPs have held a meeting with Yorkshire Water at the House of Commons to discuss the issue.

The firm has said it is in "total compliance" with tax rules.

Conservative MP for Skipton and Ripon Julian Smith said the MPs would be debating in Parliament how those rules could be changed.

Mr Smith acknowledged Yorkshire Water was doing nothing illegal, but maintained the firm had acted in a "malevolent way" whilst there had been 6.6% average rise in water bills last year.

'Taxpayer loses out'

"It does come down to the corporate behaviour of individual firms," he said.

"The rules that allow Yorkshire Water to do some of the things they are doing are quite legitimate and they're useful to many companies

"But, if they are taken to the extent that Yorkshire Water is doing, if they are used in a malevolent way, then the taxpayer loses out."

After meeting with Yorkshire Water bosses, Mr Smith said he was disappointed that while they had explained their situation there was "no sense of contrition and no apology".

In a statement, Yorkshire Water said it was happy to discuss its tax arrangements with the MPs and claimed the firm invested "more than £1m every day" in the regional economy.

"As a wholly UK tax resident company, we pay our tax in full and in total compliance with HMRC rules so we are concerned that some MPs have raised questions about the amount of tax we pay," it said.

"We have always been completely open and transparent about our accounts.

"We recently published our annual report which includes a full explanation of why the business is structured the way it is, how it is financed and how the government calculates how much corporation tax we have to pay."

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More England stories

RSS

Features

  • photo of patient zero, two year-old Emile OuamounoPatient zero

    Tracking first Ebola victim and and how virus spread


  • A young Chinese girl looks at an image of BarbieBarbie's battle

    Can the doll make it in China at the second attempt?


  • Prosperi in the 1994 MdSLost in the desert

    How I drank urine and bat blood to survive in the Sahara


  • Afghan interpetersBlacklisted

    The Afghan interpreters left by the US to the mercy of the Taliban


  • Flooded homesNo respite

    Many hit by last winter's floods are struggling to pay soaring insurance bills


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.