THE Prince of Wales's estate, which includes parts of Devon, should be subject to more rigorous government scrutiny, an influential committee of MPs has said in a report.

The Public Accounts Committee said the Treasury should make independent checks on the Duchy of Cornwall's finances, and whether the duchy should continue to be exempt from corporation tax, said the MPs.

The duchy said accounts were examined externally by a professional auditor and put before Parliament.

The Duchy of Cornwall, a major landowner in the south-west of England, is a private estate that funds both the charitable and private activities of Prince Charles, Duke of Cornwall.

Currently the Treasury must approve all of the duchy's land deals with a value of more than £500,000. But the cross-party committee said details of each transaction were not published, and more transparency was required.

The Prince of Wales pays tax on his own income voluntarily but the duchy does not contribute corporation tax on its commercial activities.

The committee's chairwoman, Labour MP Margaret Hodge, said this exemption may give the duchy an unfair advantage over its competitors, and added that the Treasury should examine whether it created 'an unlevel playing field'.

Ms Hodge said the duchy performed well in 2012-13, increasing its total income and producing an overall surplus of £19.1-million. But she was concerned that the Treasury relied on the duchy to provide it with accurate information without carrying out its own checks.

The Duchy of Cornwall said it did not believe it had an unfair tax advantage over its competitors.

A spokeswoman said: 'The Duke of Cornwall's income is taxed at income tax rates. The Duchy is not subject to corporation tax and the duchy is not a corporation.

'The duchy is exempt from tax on capital gains; any capital gains have to be reinvested in the business and cannot be distributed.

'We are pleased to see that the committee has highlighted the duchy's success in achieving an increased revenue surplus.'

The duchy said it would consider the committee's report carefully and contribute to the Treasury's response as necessary.