Fair Tax Status

Posted on January 10 2011

I thought this comment on the blog over the weekend (that I have edited slightly) worth highlighting:

I am a leftleaning chartered accountant

Whilst I applaud the efforts of taxuncut etc for drawing atention to the problem I believe that there efforts is a sideshow and a circus. I propose a badge for businesses similar to the fair trade badge. This will enable those who believe that tax avoidance (evasion) (whatever?) can shop on their high street and know that the multiples are not just taking all the profits out of this Country and to for example Switzerland. (Isn't Boots reprehensible).

I believe that some people for example yourself and Will Hutton, Larry Elliot, Johann Hari, Franky Boyle ( only joking ) could pull together some guidelines and ask businesses to apply for Fair Tax Status. This isnt legally binding but anyone with half a brain can see those who arent playing the game. (Foreign Holding companies for example in low tax regimes would be a giveaway)

At the end of the day you wont get everyone to subscribe to this but I think you will get all party crossover. If for example 20% of Boots customers were put off shopping there by their agressive tax planning then that would more than negate any advantage they could have by relocating to Switzerland.

I would love to hear your response to this

I agree with the sentiment. And there is a fledgling scheme of this nature - to which the Tax Justice Network drew attention very recently. I am not sure how successful it is, but it is clear that there is thinking developing on this issue.

I admit this is something I doubt I will do (I am finite!) but I also agree with the sentiment that this is the right direction of travel. I am interested to solutions to problems, and this is a solution to a problem. Those who say tax avoidance is legal will maintain that position, no doubt, for time to come. Remember though that there are also climate change deniers out there, whilst many of us take action on this issue seriously. Such a 'tax mark' would help those who do want to make appropriate choices.

I would encourage those with interest to follow the oinks from the TJN site and see what is happening, and what ore can be done.

PS I also know the Co-op Bank has looked at this issue. It may be worth looking at their criteria as well.

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2 Responses

  1. Bruce says:
    January 10 2011 at 2:58 pm

    Just noticed this and think it’s a great idea. As a member of the great British public no special insight into the tax affairs of companies I would really welcome a “Fair Tax Alliance” sticker or some such that I can easily see and understand. With enough of a push and if at least a small number of household names can be signed up early then I reckon it’s got a potential to go mainstream within just a few years.

  2. roger rabbit says:
    January 10 2011 at 6:42 pm

    What a sad indictment it is that if your main criterion were not to patronise the worst of the out and out tax avoiders in each high street retailer category, when shopping for the products below, you could not use the high street store or business listed

    Supermarket food – Tescos
    Toiletries – Boots
    Clothes – BHS and Top Shop
    CDs – HMV
    Financial Services – Barclays
    Electricals – Currys

    On the plus side for me, I shop for supermarket food (mainly) at the Co-op as there are 4 within walking distance and never use Tesco, buy clothes from lots of places (never at Topshop or BHS), bank at Smile (the Co-op online bank) and never go near Currys unless it’s an emergency.

    On the minus side, the wife is addicted to Boots, and I do buy CDs and DVDs occasionally from the physical HMV shop (not online).