The following comes from the Fair Tax Mark blog, where it was not written by me (for the record):
The media is buzzing with news that a Welsh town has supposedly ‘gone offshore' in protest at tax avoidance by multinationals such as Starbuck and Google. Followed by a BBC crew, local traders from Crickhowell in the Brecon Beacons have decided to shine a light on the dubious practices normally only available to large businesses by attempting to copy them and set up an offshore structure of their own.
It's a classic ‘David vs Goliath' story that has caused quite a stir but what happens next? Will encouraging towns to go offshore lead to real change? We're not convinced.
When big businesses and wealthy individuals avoid tax, they undermine the very social contract upon which our society is based. As citizens, we're rightly outraged, and think “if I have to pay, why don't they?”.
However, if that sentiment then turns into “well if they're not, I'm not going to either” which is what the Crickhowell businesses seem to be saying, it could turn into a very dangerous game indeed.
Fair Tax is about more than just ensuring everybody gets to play by the same rules — although that's clearly important. It's about ensuring that everybody contributes their fair share to society, so we can all benefit. Tax not only pays for schools, hospitals and vital services but like it or not, it's also very literally the glue that holds us together as a nation of law abiding people.
If ordinary people start joining the avoiders, we end up undermining the tax system and the society on which it is based, rather than forcing the real culprits, government and big business to change their ways.
The Crickhowell businesses say they want to pay corporation tax — and rightly so, as this is the only tax that allows the community to share in the profits they helped create.
Therefore while we are happy that a new group has joined the debate on tax justice, a truly Fair Tax story has a different ending — one that ditches the sleaze, and embraces a longer term solution that we can all be a part of.
We have been working in public and behind the scenes for many years now to create truly Fair Tax towns, ones that don't embrace the tactics of the race to the bottom and instead seek to involve businesses and others leading by example to embody the changes that they want to see.
We invite all those involved in this programme (from the production company to the Crickhowell shops) to consider getting Fair Tax Mark accredited and participate in our campaign.
Of course they will have to wind up the offshore structure and instead join a growing movement of businesses including the likes of SSE, Lush and the Phone Coop that believe paying tax is as the heart of a fair society.
Imagine if the whole Crickhowell chose to only buy from Fair Tax businesses? That not only directly impacts the avoiders, but sends a powerful message to government too — without undermining the tax system or taking unnecessary risks. It may not quite be a happily ever after ending, but it would be the first step to a more positive future.
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They say:
Fair Tax is about more than just ensuring everybody gets to play by the same rules — although that’s clearly important. It’s about ensuring that everybody contributes their fair share to society, so we can all benefit.
but the two are indivisible.
Valud points; morally, it’s the wrong thing to do.
Politically, it’s very much the right thing to do: even the BBC and the right-wing press have picked up on the large-scale evasion by major businesses – and the political dynamite of a small businessman and taxpayer pointing out that he should not have to compete against privileged players who are permitted tax-free profits.
That’s now in the national consciousness, and in the County Conservative Clubs. At last.
Sounds like you don’t understand what tax evasion is.
It could be argued that these traders have reached the same position as junior doctors or any other workers who have come to the conclusion that they are not going to get anywhere with a completely intractable employer. The only option left is to go on strike.But I am sure they won’t see it that way at the golf club. In reality it is the same fight as workers standing up for their rights.
Maybe its a case of trying a tougher approach, as the nicer Fair Tax approach that we would all ideally like, does not seem to be having the desired effect on government or big business.
I can see the problems arising. These local traders may get to like the idea of not paying tax and will not want to get back to the present situation, and will only do so if forced by HMRC. But is that not the point of the whole exercise.
I think the FTM is having an impact: I see it, often, but that’s not the point here
I wholly share the anger of people who think small traders are badly treated by the tax system
My concern is that this could be deeply irresponsible television by encouraging a) tax non compliance b) creating the risk of significant tax penalties for those who cannot afford to pay them
I think that is irresponsible television
And I think that this is a television created protest: four towns were, I know, considered
I will always argue for the right to protest, but I see the creation of forlorn hope or the encouragement of reckless action as something else
Do no harm is not a bad maxim – and I happen to think the junior doctors are seeking to work within that constraint
I agree Richard. Deeply irresponsible television, although that is par for the course days. The days of television providing a forum for distinguished public intellectuals such as yourself is long over. Instead we have idiotic stunts like this which could have been designed by the likes of Tim Worstall. At times like this I fear there is no hope, but campaigners like you keep my spirits up.
I am not sure I am a distinguished public intellectual
But I genuinely feel there are better ways to deal with this issue
It is, I think only the second time I have refused to do a programme and I have done more than 40 now, I think
Do not be so modest Richard. I hope you will have more opportunities to appear on TV in the future.
Watching you squirm on this one is quite interesting!
Normally you would attack outright business choosing to avoid tax and show pride in it but as it is small shop traders you have to back down.
The fact that they are promoting the wrong alternative in your opinion, if Global companies don’t pay Corp Tax then why should anyone, is a problem but you have to stand back and do nothing or else you will become the bad guy!
Who knows?….This could become the tax campaign that unites everybody, scrap Corporation Tax and go to more indirect taxation…..we can beat avoidance after all!…….just scrap the taxation altogether!
Squirm?
I’ve been in the national press objecting, inclduing the FT
Have you a clue what you’re talking about, ever?