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Tax rises by 19%

British companies have faced a 19 per cent tax rise in recent years despite cuts made to corporation tax.

A survey of British-based finance directors by PriceWaterhouse Coopers has found that despite corporation tax contributions dropping 17 per cent over the last seven years, other business taxes have increased by 58 per cent. These other taxes include VAT, national insurance and property rates.

It has been concluded that despite the public and political focus on corporation tax contributions, businesses continue to be called on via other taxes instead.

Survey takers also argued that the government had created a picture of leniency by shifting the burden away from corporation tax and onto other rates. However, corporation tax is dependent on profits while the other forms of tax have been labelled more 'reliable'.

The survey also proved that the 100 companies profiled paid £77.1 billion to the Exchequer in 2012, amounting to 14.2 per cent of tax received, which matched the previous year despite the ongoing financial crisis.

The survey follows on from the 2012 scandal involving corporations such as Amazon and Google, which were accused of not paying their fair share on UK profits.

Another results from the survey was the call for a simpler tax system. Corporation tax is only one of 24 business taxes applied by the UK. Benefits would not only include a more streamlined system but also an increase in the appeal of Britain as a place to conduct business. It was argued that moves to bring in new legislation only masked any positive policy initiatives in this area.

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