Accountancy firm PricewaterhouseCoopers (PwC) has been accused of promoting tax avoidance "on an industrial scale", in a report by MPs.It is said to have helped hundreds of clients cut their corporation tax bills by setting up bases in Luxembourg.
Earlier this week the Archbishop of Canterbury said companies should pay tax wherever they earned their profits.
PwC said it disagreed with the Public Accounts Committee report but added that the tax system was "too complex".
The report was based on an evidence session held in December, at which PwC gave evidence.
"We believe that PricewaterhouseCoopers's activities represent nothing short of the promotion of tax avoidance on an industrial scale," said Margaret Hodge, chairwoman of the Public Accounts Committee (PAC).
She said PwC had written more than 500 letters to the tax authorities in Luxembourg, on behalf of more than 300 international clients.
The tax avoidance schemes, which are legal, involve companies diverting profits to tax havens like Luxembourg via a series of loans between different parts of the business.
The profits are eventually taxed in that country, but often at tiny rates
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