PricewaterhouseCoopers, one of the world’s “Big Four” accountancy firms, has hit back at claims from a UK panel of lawmakers that it continues to advise clients on how to avoid tax through complex structures.

PricewaterhouseCoopers, one of the world’s “Big Four” accountancy firms, has hit back at claims from a UK panel of lawmakers that it continues to advise clients on how to avoid tax through complex structures.

The House of Commons Public Accounts Committee, which in 2013 issued a report, “Tax Avoidance: the role of large accountancy firms,” said on its website yesterday that although it may be the case that the Big Four no longer tried to sell “very aggressive” avoidance schemes, they were still advising firms how to get the lowest international tax rates possible. Recent media reports that PwC has helped firms broker tax deals in Luxembourg – a low-tax state – have prompted the PAC to demand that PwC testify to it, after having done so already.

The issue has become politically controversial as multinationals such as Google, FedEx and Amazon have sought to domicile in specific locations to minimise corporate taxes. Many of these firms are American – US corporate rates go up to 40 per cent (source: KPMG), above the 24.1 per cent average level for countries in the Organisation for Economic Co-Operation and Development group of major industrialised nations. Defenders of avoidance practices say companies are merely using single market rules in the European Union and that avoidance is not illegal. They say if politicians dislike such practices, they should enact simpler, more rational laws in the first place.

Asked about the Public Account Committee’s strictures, PwC told WealthBriefing in an emailed statement: “PwC has long supported tax reform - we want a tax system in tune with the way businesses operate today, and a system that people trust. Reform isn't a distant aspiration; the OECD's international tax reforms are progressing faster than many people had anticipated.”

In the meantime, global businesses investing, transacting, selling and expanding, must comply with the existing rules across multiple jurisdictions. We're proud of the work we do to help them,” it concluded.

The PAC said it first took evidence about tax avoidance issues from PwC in January last year alongside Deloitte, Ernst and Young and KPMG.

“In light of recent information on tax agreements brokered by PwC between multinational corporations and the Luxembourg tax authorities, the Committee have recalled PwC to review that firm’s role in tax avoidance schemes,” the PAC said.

The issue of firms seeking low-tax jurisdictions as domiciles has led to diplomatic rows. Ireland has been criticised for its status (see here). Luxembourg's fund industry felt obliged to defend itself over the past few days from complaints about the jurisdiction's role as a low-tax haven (see here).