Wednesday newspaper round-up: Johnson & Johnson, Microsoft, Grant Thornton

Revenue officials are not paying enough attention to a new tax on big tech firms’ earnings in the UK and are therefore failing to scrutinise potential avoidance, parliament’s spending watchdog has warned. While the digital services tax brought in a surprise bumper income in its first year, MPs on the cross-party public accounts committee says this suggests HM Revenue and Customs officials had failed to properly understand its impact. – Guardian

Johnson & Johnson has agreed to pay $8.9bn to settle tens of thousands of lawsuits alleging that talc in its iconic Baby Powder and other products caused cancer, the company said. The amount dwarfs J&J’s original offer of $2bn. The agreement follows a January appeals court ruling invalidating J&J’s controversial “Texas two-step” bankruptcy maneuver, in which it sought to offload the talc liability on to a subsidiary that immediately filed for Chapter 11. – Guardian

A Bank of England policymaker has insisted that its Covid money-printing spree is not to blame for double-digit inflation amid the steepest price rises in 41 years. Silvana Tenreyro said that an £895bn bond-buying programme designed to prop up the economy during lockdown had been wholly misunderstood. – Telegraph

Microsoft has stressed its commitment to Britain after reportedly shelving plans to establish a new office in London, months after announcing proposals to lay off 10,000 staff across the world. The American technology group had been searching for a location in the capital to replace its current office leases in Reading, which are set to expire in 2026, according to the property website React News, which said it had abandoned this plan. – The Times

Partners at Grant Thornton took a pay cut last year, as Britain’s sixth largest accountancy firm chose to spend more money on other pay rises, promotions and hiring a record number of school-leavers. Revenue rose by 12 per cent to £610 million in 2022 from £543 million the year before, although that compared with growth of 15 per cent during an “exceptional” 2021. – The Times