Blue chips pay £60bn in taxes

Total taxes paid by the UK's largest businesses to the Exchequer amount to over £60bn and account for 13% of all government receipts, a new survey shows.

The study, by PricewaterhouseCoopers for the 100 Group of finance directors, shows that, corporation tax aside, there is little transparency over taxes borne or collected on behalf of government by business.

The information was collected using PwC's Total Tax Contribution framework.

In 2005/06, blue chip companies paid corporation tax of over £10bn, amounting to 26% of all corporation tax, and paid other taxes totalling just under £10bn.

For the first time, the survey also examined taxes that top companies administer and collect for the government such as PAYE, employees' national insurance and net VAT.

The results show that for every £1 paid in corporation tax, 100 Group members collected a further £3.70 in taxes in 2005/06. In all, they collected taxes of £40bn on behalf of the government.

The increase in total taxes over the last three years is almost 22%.

Richard Collier-Keywood, PwC UK head of tax, said: 'The tax system is a major part of the UK's shop window for attracting and maintaining investment. Business, its advisers, and government have a joint role to play in helping to ensure the taxation of business in the UK remains competitive.'

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