An independent report has criticised the department for not putting enough work into plans to make foreign non-finance companies pay at least a certain amount of tax.

The Corporate Services Scrutiny panel say that the department has not done enough on the ‘deemed rent’ charge that would apply to the companies.

The charge would raise about £4m to £5m — but Scrutiny say that even that estimate is not backed up by evidence.

• Picture: Scrutiny Panel chairman Deputy Sarah Ferguson