Starbucks admit that they have not yet paid the millions pounds they promised they would pay to the government after a row over their tax.
Starbucks volunteers to pay £20 million in corporation tax but will it be enough to satisfy tax dodging campaigners?
Big brands Amazon, Starbucks and Google were questioned by MPs today on their entirely legal tax avoidance methods.
The Chancellor vows to crackdown on big-name global companies and wealthy individuals who dodge tax bills in a bid to claw back billions of pounds for the Treasury.
Political Correspondent Libby Wiener reports:
It just could be that we are reaching something of a tipping point where the reputational cost to a business starts to look as if it might be more damaging than the financial cost. Gaining a reputation for avoiding tax, whether legal or not, is not something any business wants to have.
The Treasury has announced it will provide the HMRC with £77 million of new funding in this Spending Review period in a bid to clamp down on tax dodgers.
It is hoped the funding will help target offshore evasion and avoidance by wealthy individuals and by multinationals.
Asked whether David Cameron would back calls for a consumer boycott of firms which avoid tax, the Prime Minister's official spokesman told a regular Westminster media briefing:
The issue for Government is how we tackle that tax avoidance, and the Treasury have been setting out what we intend to do today.
What we have to do in Government is make sure we are tackling that kind of aggressive tax avoidance. We are doing that in a number of ways. We are bringing in a general anti-avoidance rule, we are working with other countries.
The question of a boycott was "an issue for individuals", the spokesman said.
Clearly, we think that all companies should make a fair contribution to taxes and clearly that's a view that is shared by taxpayers and consumers.
HMRC ensures that multinationals pay the tax due in accordance with UK tax law.
We have been very successful in reducing tax avoidance by large businesses in recent years.
We relentlessly challenge those that persist in avoiding tax and have recovered £29bn additional revenues from large businesses in the last six years, including £4.1bn in the last four years from transfer pricing enquiries alone.
These figures speak for themselves.
– HMRC spokesman
Corporation tax receipts are dependent on the wider economy and the corporation tax rate set by Parliament, which was reduced by 2 percentage points for 2011-12.
Exchequer Secretary to the Treasury David Gauke said the Government is "determined to ensure that wealthy individuals, multi-national companies, all tax payers pay their fair share".
Totally unscientific but interesting - lots of you this morning say you have stopped using Starbucks, cut Amazon back too, but still rely on Google.
Public Accounts Committee chair Margaret Hodge, has today paid tribute to the role of the press in uncovering the big-name multi-nationals as tax dodgers.
Speaking to Daybreak she said: "[In the wake of the Levenson Inquiry] this was investigative journalism that found out what was happening with Starbucks, Google and Amazon.
"We took that up and exploited it."
Public Accounts Committee chair Margaret Hodge, has told Daybreak "that the Government should name and shame tax dodgers, as they do with welfare dodgers."
Anti tax-avoidance group UK Uncut is planning protests in Starbucks cafes on Saturday (December 8), involving "creative civil disobedience".
– Sarah Green, a UK Uncut supporter
The committee's stinging criticism of tax-dodging companies, Starbucks, Google and Amazon, is clearly justified.