John Lewis chief urges Government to probe multinationals' UK tax setups

Andy Street: managing director of John Lewis
Andy Street: managing director of John Lewis

Andy Street, managing director of John Lewis, has called on the Government to intervene and look at the issue of major multinational companies paying little or no tax in the UK.

The intervention from Street follows days after Google, Amazon and Starbucks were called to answer questions by MPs about how they managed to pay little or no tax on their UK operations.

The tax loopholes used by the three companies are legal and the three businesses denied to MPs that they were involved in tax avoidance.

Street was speaking on the Sky News 'Jeff Randall Live' show and claimed that companies involved in funnelling tax through legal loopholes will "out-invest" and "ultimately out-trade us".

He said: "You have got less money to invest if you're giving 27% of your profits to the Exchequer than, clearly, if you’re domiciled in a tax haven and you've got much more.

"So they will out-invest and ultimately out-trade us and that means there will not be the tax base in the UK. So I do think it's an issue that needs to be examined."

The John Lewis managing director also flagged up that the Treasury should look into the question of earnings from a particular county, when taxed in that same country.

During MPs' questioning of the companies, committee chair Margaret Hodge accused Andrew Cecil, public policy director of Amazon of not being a "serious person".

Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

Microsoft profits boosted by cloud computing drive
Oasis #springasmile digital campaign gets people doing good deeds
Coca-Cola: 'Don't approach bloggers with a fait accompli'
Tesco CMO Matt Atkinson: 'It is so important not to stereotype mothers'
McDonald's gives Ronald a new look ahead of global 'Fun times' social media push
In pictures: BrewDog opens first craft beer shop BottleDog for 'beer aficionados'
Facebook ad revenue leaps $1bn as it invests in targeting
Malteser or Maltesers? Mars takes Hershey trademark dispute to court
Apple Q2 profits top $10bn as iPhone sales soar
Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Tom of Finland's 'homoerotic' drawings made into stamps
Toyota achieves the impossible by calming angry Roman drivers