John McDonnell has just said this in his Labour Party conference speech:
We can't trust the Tories on this but we shouldn't just wait until we get into government.
We should act now.
One way is to mobilise shareholder power to demand companies uphold basic tax justice standards.
Numerous institutions from churches to trade unions and pension funds have large scale shareholdings in many of the companies that avoid taxes.
So today I'm announcing my intention to bring together these organisations to launch a shareholder campaign
We'll be demanding companies sign up to the Fair Tax Mark standards, demonstrating transparently that they pay their fair share of taxes.
So fair warning to the tax avoiders, we are coming for you.
As many will know, I thought up the Fair Tax Mark, and am still a non-exec director of it.
We are, of course, pleased by the endorsement but remain strictly non-party political.
The Fair Tax Mark has issued this statement in response to John McDonnell's comment:
Paul Monaghan, Chief Executive of the Fair Tax Mark said: “In the past, UK institutional investors shied away from the issue of responsible tax planning - preferring to turn a blind eye to the enormous tax evasion and avoidance of many of the companies they invest in. However, in recent months this has started to change, in large part driven by recognition that the UK public have this as their number one issue of concern when it comes to corporate conduct. But also because an increasing number of businesses and corporate leaders are standing up and proudly supporting the principle of paying the right amount of tax in the right place at the right time. We welcome the Labour Party's intervention and their aim to accelerate change in this crucial area.
Businesses of all shapes and sizes are engaging with the Fair Tax Mark across the UK, and we are now seeing similar initiatives emerging across Europe. Corporation Tax is often presented as a burden, but it shouldn't be. Not when considered against the huge array of public services it helps fund - from education, health and old-age care, through to flood defence, roads, policing and defence. It also plays a crucial role in holding the whole tax system together — helping to counter financial inequalities and rebalance distorted economies.”
The Fair Tax Mark certification scheme was launched in February 2014 and seeks to encourage and recognise organisations that pay the right amount of corporation tax at the right time and in the right place. Tax contributions are a key part of the wider social and economic contribution made by business, helping the communities in which they operate to deliver valuable public services and build the infrastructure that paves the way for growth. Certified businesses include FTSE-listed PLCs, co-operatives, social enterprises and large private business. We operate as a not-for-profit community benefit society and believe that companies paying tax responsibly should be celebrated, and any race to the bottom resisted. https://fairtaxmark.net/
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One huge step for a Labour Opposition front bench shadow. One very small step for mankind.
But baby steps is what gets us where we’re wanting to be. Eventually. Perhaps.
Let us be of good cheer for small mercies granted by the great and good. 🙂
Richard, I’m sure you could ask the CEO of Fair Tax Mark to pass onto the respective authorities the evidence that he has of tax evasion by UK companies. Tax evasion as far as I know is illegal regardless so it is his duty to report this to the authorities.
I await the prosecutions so Fair Tax Mark can be held up as a beacon of truth…unless of course the statement is just another attempt to conflate evasion and avoidance.
No one is suggesting evasion except you
Why make stuff up?
“No one is suggesting evasion except you
Why make stuff up?”
Be fair, Richard !
Someone has to stuff the straw men or there’d be nothing AT ALL for the terminally crooked-buggers say in defence of their unscrupulous pillaging of the Common Weal.
Oh Julian!
You’re such a scream!
Zzzzzzzzzzzzzzzzzzz.
Erm, so the CEO of Fair Tax Mark says: “In the past, UK institutional investors shied away from the issue of responsible tax planning – preferring to turn a blind eye to the enormous tax evasion and avoidance of many of the companies they invest in.”
I was merely pointing out that if Fair Tax Mark knows about tax evasion by our largest companies then they should report it to HMRC.
I am not making this up – it’s a quote from the CEO on Richard Murphy’s site. In what way is making this up?
If this sentence did not mention tax evasion my comment would have been untruthful, but as the CEO said it I assumed that he had proof. Not sure why this is considered a scream by or an untruth.
There is no doubt that there was evasion in the past
Paul said that
It has been evidenced
So as I said has Paul passed on this evidence of tax evasion to HMRC as I’m sure they and the police would love to get a multinational in court for tax evasion?
BTW I disagree with aggressive avoidance and would support a Fair Tax Mark if it was free from political influence and also came with strict rules on who makes the rules.
At the moment, The Fair Tax Mark is too much a product of your own outlook on tax avoidance and what companies should and should not be able to do around tax. It also ignores that most of the tax evasion is by individuals; companies avoid tax.
There is also a lack of honestly around tax and avoidance. Witness last weeks FT splash on Starbucks and the tax they pay – a statutory deduction for share awards was described as a “tax break”, but did not mention that the share awards would be taxable at rates of up to 45% on the recipients in the UK. That’s just misleading reporting for the sake of it. It is extremely unhelpful and diminishes the business climate in this country.
We have found no evidence of such evasion
That it has happened is well documented
Now, very politely, please stop wasting my time