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National Health Service (NHS) hospitals use offshore tax planning

April 18, 2011  |   Posted by :   |   News   |   0 Comment»

National Health Service (NHS)One of the world’s leading banks has used offshore company formations to aid the NHS in its international tax planning affairs, it has been revealed.

The BBC has reported how HSBC used a legal tax loophole to handle profits from private finance initiative (PFI) schemes, such as the Queen Alexandra Hospital in Portsmouth.

Speaking to the news provider, tax specialist Nick Parker said that the NHS was “obviously” using offshore tax planning to minimise the amount that it has to pay, but that it was “clearly” paying UK tax.

“The accounts to September 30th 2010 indicate there was a £2.5 million tax charge. However, when you actually read the notes only £100,000 of that was paid across to the UK authorities,” he explained.

According to the BBC, this amount was charged on profits of more than £38 million from its PFI schemes, the equivalent of less than 0.5 per cent of its earnings, highlighting the benefits available through offshore tax planning.

Meanwhile, the Association of Accounting Technicians has recently lauded the advantages of running businesses through limited companies, which ultimately pay less tax than sole traders and partnerships.

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