Crackdown on firms that hide profits

MULTINATIONALS accused of avoiding tax are also targeted in the IPPR report.

They would be hit by an ‘alternative Minimum Corporation Tax’ based on a complex formula involving the firm’s estimated UK profits.

The report says it would be a ‘ backstop tax’ on corporations that report low profits to HM Revenue & Customs.

‘It should be applied when a firm declared profits below a certain percentage of its global profits for more than five years,’ it said.

Companies including amazon and starbucks have been accused of avoiding hundreds of millions of pounds in tax.