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Companies could 'apportion profits within EU'

22 May 2013 Last updated at 10:28 BST

On both sides of the Atlantic, legislators have recently been accusing big companies of aggressively avoiding tax.

But while they have questions for Google and Apple - whose CEO, Tom Cook, defended the company's tax arrangements earlier this week - many are asking why legislators themselves are not taking measures to make such companies pay more tax.

Professor Prem Sikka, Professor of Accountancy at Essex University, told the Today programme: "The ideal position would be to get international agreement - there is no reason why a formula for apportioning profits within the EU countries cannot be developed."

First broadcast on BBC Radio 4's Today programme on Wednesday 22 May 2013.