Liberal Democrat leader Nick Clegg has said it should be harder for big corporations to avoid paying tax.
Nick Clegg said if loopholes are closed, then people on middle and low-incomes would be able to benefit from tax cuts.
He commented: “The supermarkets don’t just have the planning system working in their favour, they’ve also got the tax man eating out of the palm of their hands.
“They say that every little helps but then set up hugely complex tax avoidance schemes. They are jumping through loophole after loophole while the Chancellor sits idly by as ordinary families and small businesses struggle to make ends meet.”
Clegg argued that larger supermarkets avoid paying tax due to complex offshore banking arrangements, meaning billions of pounds worth of revenue is lost.
“Just look at what Tesco, our biggest retailer, is able to do. Putting in place structures to save millions on Stamp Duty related taxes. It may be legal but it’s wrong,” he said.
The politician was speaking at the Association of Convenience Stores latest event, the Heart of the Community.
MPs also said at the gathering that efforts should be made so that high streets do not lose their identity as local shops play a vital community role.
