好色先生TV

Laing O鈥橰ourke has been challenged over its tax affairs amid a drive to ensure firms receiving the billions of pounds of public money going into construction and infrastructure pay their 鈥渇air share鈥� of UK taxes.

This week Conservative MP Stephen McPartland, who last year launched a campaign for greater tax transparency among FTSE100 companies, wrote to Laing O鈥橰ourke chief executive Anna Stewart (pictured) raising concerns over the firm鈥檚 tax arrangements.

According to its latest annual review, Laing O鈥橰ourke, the UK鈥檚 largest privately-owned contractor, is a 鈥渨holly owned subsidiary of Suffolk Partners Corporation, a company incorporated in the British Virgin Islands鈥�, a British Overseas Territory regarded by many as a tax haven.

The review also says Laing O鈥橰ourke, which posted group turnover of 拢3.5bn last year, itself is registered in Cyprus, a country with one of the lowest rates of corporation tax in Europe at 12.5%.

However, the firm says the overall group pays tax at a rate 鈥渂roadly in line鈥� with the UK corporate tax rate of 24%.

McPartland鈥檚 intervention came a week after Stewart鈥檚 appointment to the government鈥檚 Construction Leadership Council, which is made up of top business and government figures and will oversee the implementation of the industrial strategy for the sector.

McPartland鈥檚 letter notes Stewart鈥檚 role on the council and asks for her view on corporate tax transparency among firms benefiting from public spending.

Taxpayers expect contracts to go to companies who are paying their fair share of taxes

Stephen McPartland, MP

He wrote: 鈥淏ritish taxpayers expect government contracts to be awarded to companies who are paying their fair share of taxes here in this country and I wonder if you agree with us?鈥�

According to construction information provider Barbour ABI, Laing O鈥橰ourke has won roles on more than 拢1bn worth of public projects since January last year, including Crossrail projects at Liverpool Street station (pictured) and Tottenham Court Road worth 拢300m and 拢200m respectively.

McPartland told 好色先生TV: 鈥淚t鈥檚 important that we now start looking at those companies who will make huge profits from the billions of pounds of infrastructure [investment] the chancellor recently announced.

鈥淲e need to ensure companies who play by the rules and pay their fair share of tax do not lose out to companies who are benefiting from lower costs because they pay lower taxes than here in the UK.

鈥淭his massive investment in infrastructure is designed to help the economy grow by investing here in the UK. The plan cannot work if that investment is transferred outside of the UK.鈥�

Major global corporations such as Google, Amazon and Starbucks have come under fire in recent months over the size of their tax payments in the UK, amid growing efforts by the government to tackle international tax avoidance.

On its website, Laing O鈥橰ourke says: 鈥淲e believe in doing business in a way that is fair, transparent and, above all, safe and sustainable.鈥�

A Laing O鈥橰ourke spokesperson said Stewart would review McPartland鈥檚 letter and respond to him on all points.

He said Laing O鈥橰ourke Group鈥檚 tax rate for 2012/13 was 23.2%, and that in 2013/14 the group expected to be a net payer of tax at a rate similar to the UK corporation tax rate.

He said: 鈥淟aing O鈥橰ourke is committed to global compliance in its financial and tax affairs as well as to health, safety and environmental considerations and its extensive social obligations in the communities where it works.鈥�