What is the Public Accounts Committee recommending?
It is calling on HMRC to set out how it plans to take a more active role in challenging the advice being given by accountancy firms to their multinational clients, with a particular view to the mass marketing of schemes designed to avoid tax.
It wants HMRC to push for a more rigorous and meaningful definition of what substance means when defining where a business is located for tax purposes.
It “strongly” believes the government should intervene by introducing a code of conduct for all tax advisers, as was recommended in its April 2013 report.
The government should consult on how it regulates the industry and enforces this code, and financial sanctions should be imposed for non-compliance.