Hugh Pym
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Companies 'have lawyers arguing over tax'

A committee of MPs has criticised "cosy" deals between HM Revenue & Customs (HMRC) and big businesses.

The Public Accounts Committee said large firms got favourable treatment and there was a lack of public accountability over how deals are done.

The committee of MPs said they believed there was £25bn of outstanding tax potentially owed by big companies and wanted the Revenue to be more open about its dealing with large firms.

The BBC's chief economic correspondent Hugh Pym says companies have top lawyers contesting every line of tax and that HMRC have to get the best deal for the tax payer.

  • 20 Dec 2011