UK's top companies condemned for prolific use of tax havens

• Only two of FTSE 100 have no subsidiaries in havens
• Big four banks and Tesco among biggest users 
• ActionAid findings described as shaming by Lib Dem peer

The UK's 100 biggest public companies are running more than 8,000 subsidiaries or joint ventures in onshore and offshore tax havens, according to research published on Monday, raising fresh concerns about the full extent of corporate tax avoidance.

The figures, published by the charity ActionAid, show that only two of the companies listed on the UK's FTSE 100 have no subsidiaries in tax havens – while companies such as Barclays and Tesco own hundreds.

Corporate use of offshore subsidiaries has been roundly criticised by tax campaigners as a tactic to legally reduce corporate tax bills, with Vodafone, Starbucks and Amazon attracting widespread protests and criticism from MPs.

Barclays, which has more than 120 subsidiaries in the Caymans alone, said it is continuing to reduce the number of its operations in low-tax jurisdictions.

David Cameron has pledged to put tackling the issue of tax avoidance and offshore secrecy at the heart of next month's G8 summit, which Britain chairs this year.

Speaking after Saturday's meeting of G7 finance ministers, the chancellor, George Osborne, said international action was needed, adding it was "incredibly important that companies and individuals pay the tax that is due".

But many of the offshore jurisdictions used by the FTSE 100 have close ties to the UK, illustrating the challenge facing Cameron and Osborne ahead of negotiations with other G8 leaders.

In total, FTSE 100 companies have 1,685 subsidiaries in UK Crown dependencies such as Jersey, or overseas territories such as the British Virgin Islands (BVI), Bermuda and Gibraltar.

The Treasury recently secured a deal to share more information on potential income-tax evaders operating out of British overseas territories. But campaigners warn that agreements so far do little to tackle offshore corporate secrecy and structures.

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Article source : http://www.guardian.co.uk