Lottery firm Camelot accused of avoiding £10million tax Investigation finds business taking high-interest loans to cut profit and tax Legal loophole became known to HMRC last year but they kept it open This month Camelot has doubled the price of a Lotto ticket to £2 Tax scheme: Kelly Brook promotes the new more expensive Lotto draw for Camelot this month, which has today been accused of avoiding £10m in corporation tax National Lottery owner Camelot has today been accused of avoiding at least £10million in corporation tax by exploiting a loophole that HMRC knows about but has never closed. Just weeks after the cost of a Lotto ticket doubled to £2, it emerged the Canadian-owned business has used a legal fiddle based in a tax haven. To take advantage of the loophole, Camelot reportedly took out high-interest loans from its parent company via the Channel Islands Stock Exchange. They then used the giant interest payments these generated to reduce their profits, which may have saved them at least £10million in tax since April 2010. At least 30 companies are said to use this loophole, which may have taken away up to £500million each year from the taxman, according to Corporate Watch and The Independent. Last year the Government revealed it knew about the scheme, estimating it was losing £200million a year, but has still failed to shut it down after speaking to accountancy firms and big business. Chair of the Commons Public Accounts Committee, Margaret Hodge has said she will take HMRC to task over the issue at a hearing next week. 'I find it extraordinary that HMRC could be so naive as to send out a consultation document on closing a tax loophole to a group of vested interests, including some of the very people who benefit, or whose clients benefit, from it - and then accept their response seemingly without challenge,' she told The Independent. Corporate Watch say that Camelot could have avoided £10million in corporation tax after accruing £38.7million of interest on £172.6million it owes to its owner the Ontario Teachers" Pension Plan. Loans are taken out at around 12.5 per cent rather than the five per cent offered by UK banks because it is more tax efficient. Tax haven: Camelot has apparently taken out high-interest loans via the Channel Islands (pictured), which then allows them to reduce their profits and therefore their corporation tax bill But Camelot said today that 'their analysis of our figures is inaccurate', but did not deny using the loophole. 'Camelot complies fully with all UK regulatory, tax and legal requirements - and is a very significant UK taxpayer,' a spokesman said. In fact, in the period reported by the Independent, Camelot paid UK taxes well in excess of £1.5 billion. This figure included lottery duty, corporation tax and (non-recoverable) VAT. During the same period, Camelot generated almost £3.5billion for National Lottery Good Causes across the UK and paid out over £6.2billion in prizes to players. 'Camelot's strategy for long-term, responsible growth has seen it grow total National Lottery sales by over 50 per cent in the last decade - meaning that it now raises over £35million for National Lottery Good Causes each week.' HMRC refused to say why it did not shut the loophole and said: 'For legal reasons, HMRC cannot comment on the affairs of individual taxpayers.'