New research has shown the UK government is continuing to hand out contracts to private firms avoiding tax. The paper, by Ethical Consumer magazine, shows that 13 of the 20 biggest companies being awarded public service contracts, including KPMG and Serco, have subsidiaries in tax havens. Indeed, Capita, one of the worst offenders, was given a £100m contract by the DVLA to crack down on vehicle tax evasion. Critics have long argued that the state should use its procurement weight for positive change in the private sector, especially when it concerns its own revenue. The Tax Justice Network said that “some of these companies are among the least ethical in the UK” based on recent ethical and environmental ratings.
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