BBC executives dodge income tax

The two executives have been working for the state-run BBC for more than a year and their tax dodge has helped them to save thousands of pounds by paying corporation tax of 20% instead of paying much more in income tax, reported the Guardian.

The BBC’s director-general, Mark Thompson, admitted that the executives avoided paying taxes. Nevertheless, he refused to reveal their identities and said they were not in a “senior management position”.

“We do have two service company arrangements in place for two individuals who have been paid more than £100,000 over the last 12 months, and whose work is now of a continuing nature” , said Thompson.

The revelations come as a recent analysis of tax returns of Britain’s wealthiest people showed British multimillionaires pay “virtually no income tax” exploiting legal loopholes.

The study showed that, taking a number of tax avoidance measures, Britain’s wealthiest people paid an average of 10% tax or in some cases even nothing at all while they had to pay around one third of their income.

Labour MP David Winnick, from the Commons Culture, Media and Sport Committee, slammed the BBC executives’ tax dodge saying “it is unacceptable that a constituent of mine earning £20,000 a year is potentially paying more in tax proportionally than highly paid executives at the BBC.”

Moreover, Tory MP David Mowat has revealed that a response to a freedom of information request shows 36 freelancers to whom the BBC pays through service companies received £100,000 in 2011.

ISH/JR/HE

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