Tax authorities 'hold back' on big firms, report finds

HM Revenue and Customs seems to "lose its nerve" when faced with the prospect of taking legal action against global giants, while pursuing small businesses and individuals, according to a new parliamentary report.

HMRC has fallen short on the unpaid tax it hoped to extract from Swiss bank accounts - collecting just £440 million so far this financial year, rather than the £3.12 billion forecast after a bilateral agreement - said the House of Commons Public Accounts Committee.

Changes in "controlled foreign company" rules and the failure to close a loophole relating to Eurobonds have made it "easier for the companies to avoid tax while ordinary people continue to pay their share," said the committee's chairwoman Margaret Hodge.