A panel involving cross-party lawmakers has urged the government to conduct a review of the existing corporate income tax laws and bring necessary reforms.

They said that the current tax system is not working and needs reforms, urging the UK Treasury to look for scope for radical changes to the existing tax regime. The House of Lords committee on economic affairs released a report on Wednesday calling for transparency, greater oversight and a review of tax rules. They also asked the government to review the relief on interest payments that could encourage businesses to take on excessive debt.

Lord MacGregor, the chairman of the committee said, "There is a sense that corporation tax is voluntary for some multinationals that operate globally, while small UK-based businesses go by the book and have to pay. That brings the tax system into disrepute and loses much-needed revenue."

They also asked for new rules to regulate tax advisers including the right to remove their right to practise on breach of code of conduct or promotion of tax avoidance scheme. They also want the companies to publish the summary of their tax payments to allow parliament and the public to evaluate the amount of tax paid by the companies.