Barclays Bank is promoting the use of offshore tax havens to big companies operating in Africa, in spite of saying that it wants to become a “force for good”, ActionAid has revealed today.
Barclays is using its “Offshore Corporate” department to market a range of tax havens to big businesses in Africa including promoting the low tax levels that are available.
A new poll commissioned by ActionAid shows that 57 percent of Barclays customers say it is unacceptable for the bank to provide services that can help large companies reduce their tax bills in developing countries. Only 21 percent of customers say that it is acceptable.
ActionAid Tax Justice Adviser Toby Quantrill said:
“Every year developing countries lose billions of pounds of vitally needed revenue because of tax avoidance by big companies using tax havens.
“When companies avoid tax, they drain billions of pounds of revenues out of developing countries that could be used to help build schools and hospitals and lift people out of poverty.
“Now Barclays customers have sent a stark message to their bank. A clear majority are saying it is unacceptable for their bank to be providing the kind of services that can help businesses reduce their tax payments.”
Earlier this year Barclays Chief Executive Antony Jenkins promised that Barclays was “changing” following a range of scandals that have damaged the bank's image, including allegations of corporate tax avoidance using tax havens.
But ActionAid's report - Time to Clean Up: ‘How Barclays Bank promotes the use of tax havens in Africa' - shows that in September Barclays Offshore Corporate increased the number of tax havens it was promoting, to include the key African tax haven of Mauritius.
Mauritius has a very low effective tax rate and its network of tax treaties with other African countries means that large companies can use it as a key location to avoid tax.
ActionAid is now demanding that Barclays honours its commitment to change and specifically to close down its Offshore Corporate department, which it uses to promote tax havens to big businesses in Africa.
Tax avoidance and the kind of practises that are frequently used in tax havens have been strongly condemned by former UN Secretary General Kofi Annan who stated that it was “unconscionable” that companies were aggressively avoiding tax “while millions of Africans go without adequate nutrition, health and education.”
According to the Organisation for Economic Co-operation and Development, tax havens cost developing countries just under three times more than they receive in aid every year.
“Tax revenue is vital to helping boost investment in basic services in some of the poorest parts of the world. But for as long as major companies like Barclays promote tax havens, then there will always be businesses who avoid tax. We are asking Barclays to do better than that. We want them to show that when they say they are “changing” — they actually mean it,” said Mr Quantrill.
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The Swiss Federal Institute of Technology has found the existence ,of a small international ownership network of control in which out of some 43000 transational corporations analysed, barely 730 entities controlled 80% of these corporations, and just 147 controlled more than 40%. Barclays Bank was No. 1.
You are very quiet on Coop Banks problems by the way despite endorsing their board (and extolling the virtues of them not having banking experience) just over a year ago. Interesting to see your selective approach to blogging. I guess this comment will be met by the delete button.
I have tweeted about the failure
I hoped to say more today
I have a lot else on – not least the need to visit the dentist to deal with toothache this morning
I think the Co-op board messed up badly
It does not make me think the Co-op bad or even its bank bad
I agree that the Coop have messed up badly.
Perhaps the irony is that due to their integrity all their dirty laundry is out in the open!
I wonder about other banks and whether they may have skeletons locked safely away in the cupboard hidden from public view?
From what we’ve seen since 2008, it would seem that banks, skeletons and cupboards – in one form or another – are pretty much par for the course. But when it comes to investigations and inquires into personal or organisational failings I suspect the defining feature will be that the Coop has historic and financial links to the labour movement, whereas HSBC, Barclays, etc. etc, lean firmly the other way, and have long standing and extensive links to the City. So, don’t expect an even-handed approach to anything to do with the Coop from hereon in. In fact, a good indicator of reason and balance disappearing out of the window is when that paragon of business ethics, Grant Shapps, gets involved.
Interesting to note the immediate enquiry into how Flowers led the bank…..nothing to do with how he was once a labour councillor….
Now, about the MASSIVE corporate benefit…..
Interesting the enquiry into union actions……
Now, about the 12 billion insurance fraud by banks and insurance companies.
Not to mention the large amount, and range, of the crime cartel known as “international finance”
I thought that the person who replaced Bob “rough” Diamond promised to inject a fresh dose of ethical and moral standards into Barclays. Clearly that was only window dressing.
http://www.mirror.co.uk/news/uk-news/vat-food-childrens-clothes-conservative-2806605
I suspect this will not happen until, or if, they win in 2015.
And It is not mentioned that even labour may have to increase the VAT rates on EU direction.