Never NL's fault...ever
The tax rate rise for small firms was needed to counter East European scams, Chancellor Gordon Brown has said.
Mr Brown said East European workers were being encouraged to register themselves as companies to avoid paying income tax when they arrived in the UK.
"It is a problem that every country faces but it is a problem that we are going to deal with," he told MPs.
"We have had a particular issue that we have had to deal with. We have had individuals artificially incorporating as companies for purely taxation purposes.
"One of the problems that we have faced - and had to act upon - is that people who are coming to work in this country are being encouraged to form and work through managed services companies even before they come into this country.
"We face the prospect of schemes that have been marketed right across Eastern Europe encouraging people to set up companies purely for the purposes of avoiding taxation."
Mr Brown said East European workers were being encouraged to register themselves as companies to avoid paying income tax when they arrived in the UK.
"It is a problem that every country faces but it is a problem that we are going to deal with," he told MPs.
"We have had a particular issue that we have had to deal with. We have had individuals artificially incorporating as companies for purely taxation purposes.
"One of the problems that we have faced - and had to act upon - is that people who are coming to work in this country are being encouraged to form and work through managed services companies even before they come into this country.
"We face the prospect of schemes that have been marketed right across Eastern Europe encouraging people to set up companies purely for the purposes of avoiding taxation."
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