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Laing O鈥橰ourke鈥檚 boss has written to the business secretary Vince Cable to defend the firm鈥檚 tax position.

The move follows pressure from Conservative MP Stephen McPartland, questioning the tax arrangements of the firm, which is registered in Cyprus and is a 鈥渨holly owned subsidiary鈥� of a company incorporated in the British Virgin Islands.

The business department, led by Cable, saying Cable expected 鈥渃ompanies from all sectors, including construction 鈥� [to] pay their fair share of tax in accordance with UK law鈥�.

In response Stewart (pictured) sent two letters last week, one to McPartland and the other to Cable and Sir David Higgins, who jointly chair the Construction Leadership Council, on which Stewart sits.

In the letter to McPartland (attached right), Stewart said 鈥渁ll firms trading in the UK should pay the correct amount of tax鈥� and Laing O鈥橰ourke 鈥渆njoy[ed] a positive and proactive relationship鈥� with HM Revenue & Customs.

She said the firm鈥檚 UK corporation tax cash payment to HMRC in the past four years was 25.4% which was 鈥渂roadly in line with the UK corporation tax rate over that period鈥�.

Stewart pointed to the firm鈥檚 work in various areas and said it contributed 鈥渟ignificantly鈥� to the UK economy.

In the letter to Cable and Higgins, she said it was not right to 鈥渋nfer some wrongdoing鈥� on the part of Laing O鈥橰ourke due to its tax affairs. 鈥淭he alleged wrongdoing seems only to be that Laing O鈥橰ourke has an international business and international ownership structure,鈥� she added.

McPartland said he was 鈥渄isappointed鈥� by the reply and pledged to continue his inquiries. 鈥淲e asked her if she supported tax transparency and country-by-country reporting and she didn鈥檛 answer鈥�, he said.

Laing O鈥橰ourke has won roles on more than 拢1bn of UK public sector work since January 2012, according to construction database Barbour ABI.