Punish tax-dodging multinationals, says Lords committee The committee therefore calls on the Treasury to examine unilateral options, including: "penalising companies engaged in aggressive tax avoidance" beyond the current sanction of blocking them from bidding for public contracts; introducing "a new system of regulation for tax advisers," who could lose their right to practice if they were found to be promoting "blatantly contrived tax avoidance schemes"; removing the current favourable tax treatment for debt over equity that "can encourage multinationals companies to take on excessive debt in the UK" as interest payments are tax-deductible; requiring "firms with large operations in the UK to publish a summary of their corporation tax returns to ensure there is clarity on what tax has been paid"; and examining potential alternative tax structures, including a destination-based tax based on the cash paid by a customer in the UK, similar to how VAT is charged. The committee also proposes that a new parliamentary committee be established, with the powers to scrutinise HM Revenue and Customs in private over the tax deals is strikes with multinationals, so getting round the HMRC's refusal to discuss any settlements on the grounds of "confidentiality." This follows the backlash over the HMRC's so-called "sweetheart deals" with the likes of Vodafone and Goldman Sachs. When a legal challenge by UK Uncut into the Goldman deal "gave a rare insight into the process," the settlement was described by a judge as "lawful" but "not a glorious episode in the history of the Revenue." Lord MacGregor said that with the exception of the destination-based tax, which would require some form of international agreement, the proposals could be implemented by Britain "without damaging our tax competitiveness." He said the "ultimate obviously is to get international agreement but the ultimate could be a long way away." Despite budget constraints, he said a priority was "adequate resourcing of HMRC. You would get your money back in spades. If you consider the number of tax experts they have versus those they face in multinationals, it's like David and Goliath. He added: "There is a sense that corporation tax is voluntary for some multinationals which operate globally while small UK-based businesses go by the book and have to pay. That brings the tax system into disrepute and loses much-needed revenue.