MPs have expressed concerns about the closeness of the relationship between HMRC and leading tax advisers and their multinational clients that are too often given leeway to avoid paying tax.

The first of two new, strongly worded reports published today by the cross-party Public Accounts Committee (PAC) claims the Revenue’s affiliation with large accounting businesses is “too cosy”.

The PAC recommended last month that the Revenue take a more active role in challenging the advice given by big accountancies to multinational clients – but the department rejected the assertion, along with suggestion for a new code of conduct for advisers intended to clampdown on the promotion of abusive tax planning.

The report, Improving Tax Collection, urges the department to reconsider its response, and reiterates the previously aired concern that some multinationals do not …