Christian Aid have just issued this press release and since I am sitting in their office right now beside Jospeph Stead I think I can share it:
European Parliament moves to force banks to reveal more about their finances are a huge step towards getting companies to pay their taxes — although the new rules should be extended to other industries, Christian Aid says today.
‘The Parliament's work on bankers' bonuses has won lots of attention but its decision to make banks reveal more about their finances will have a far bigger and better impact on people around the world,' said Joseph Stead, Christian Aid's Senior Adviser on Economic Justice.
‘The Parliament's decision to require banks to report their finances on a country-by-country basis, which has now been preliminarily agreed with the European Council, means that they will have to publish details such as profits made and taxes paid separately for every country in which they operate.
‘That will make it much easier for tax authorities to spot when banks are artificially shifting profits out of the countries where they were really made and into tax havens. Such profit-shifting is currently a severe problem for many governments, including the UK's but also those of developing countries.
‘The only barrier remaining is for EU Member States to agree formally to this change, and there are rumours the UK may seek to object. Christian Aid urges the UK government to support the European Parliament's reform, which is entirely consistent with what UK ministers have said about tackling aggressive tax avoidance and corruption.'
It's not just banks which should have to reveal more about their finances, added Mr Stead. Christian Aid has been campaigning for years for the introduction of country-by-country reporting across all industries, because tax dodging is a major problem across all industries.
Christian Aid estimates that at present, multinationals' tax dodging costs developing countries $160 billion a year, which is far more than they receive in aid. This has devastating effects on people living in poverty. We believe country-by-country reporting could make a major difference, for poor and rich countries alike.
Christian Aid is right. We are making progress - but we need CBC for all companies and we need to ensure that the UK does not object to this enormous step forward in global accountability and transparency.
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Heard on Today radio 4 this morning (in passing )
‘could drive the best talent abroad’ but also ‘this won’t make a lot of difference.’
Then of the losses made by RBS. What other industry pays bonuses when they are making losses?
But as you and Joseph point out, Richard, the bonus issue is not the main thing.
What does the BBC focus on the emotional or entertaining bit like a tabloid, and not live up to its Charter to inform and educate as well as the entertain bit?
Behind the scenes damage, is being done to undermine the BBC’s role to inform and educate, because it has been and continues to labelled a “lefty” organisation by the Far Right.
there are rumours the UK may seek to object…[despite] what UK ministers have said about tackling aggressive tax avoidance and corruption.
If the UK Government doesn’t object, I’ll eat my hat. They’ll move hell & high water to keep offshore in business. As Noam Chomsky teaches, don’t be distracted by what they say, look at what they do.
Spot on Strategist….expect a distraction to be orchestrated while the dirty deed is being done!
Agree with above.
Interestingly, all the media issue (Boris wading in etc) is on the bonus cap. CBC is probably much more important but media interest = nil.
I would hate to see CBC used as a “makeweight” on negotiations on bonus-cap, which are, TBBH, purely sophistry. (The bankers will find a way to pay their own handsomely, somehow).