They must be taxed

This abuse of the public sector contracts must end. All companies that run such contacts must pay full UK tax.

Recent research shows that 13 of the top 20 outsourcing companies have overseas subsidiaries in tax havens. This allows them the ability to re-cycle monies off shore so as to reduce or even eliminate their UK tax bill owing on outsourced contracts.

A recent Public Accounts Committee report shows that many PFI contacts are now owned by off shore companies, which means they pay little or no tax on these contracts.

Ironically for both PFI and outsourced contracts it is assumed that the companies will pay tax and this assumption is used to increase the cost of the in house comparator (if the contract stays in house then no tax is paid).

The Independent Left will gather such facts as it can regarding tax and public sector contracts and publicise these facts. Of course what is needed is an all unions campaign on this subject.

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