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Npower's three years of zero corporation tax
Energy boss tells MPs that avoidance is because of 'simple UK accounting rule'
The boss of energy giant Npower has admitted that the company hasn't paid UK corporation
tax for three years after coming under fire over rising electricity and gas bills from outraged MPs.
Paul Massara, the firm's chief executive, claimed it was because of a "simple accounting UK rule,"
but the news will spark fresh anger at energy firms, which have been accused of forcing millions
of ordinary people into fuel poverty while making huge profits while.
Senior staff from the big six energy firms SSE, EDF, E.on, Npower, Scottish Power and British Gas
were severely criticised by members of the Energy and Climate Change Committee in a heated
session at the House of Commons.
MP Ian Lavery, who provoked the admission from Mr Massara, said: "In the past three years RWE
Npower has reported profits totalling £766m - yet today they admitted they have not paid a single
penny of corporation tax over that period. People who pay their taxes unquestioningly are sick
and tired of seeing hugely profitable companies use every trick in the book to get out of
contributing their fair share.
"Hard-pressed people struggling with sky-high energy bills will be absolutely astonished that an
energy company which makes hundreds of millions in profits doesn't appear to be paying its fair share in tax."
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