Looking ahead to 2020 and beyond
The year 2020 may turn out to be a seminal year for tax justice. The new UK Government has pledged to cancel the planned reduction in corporation tax from 19 to 17%, although it remains to be seen if this welcome announcement survives the challenges of Brexit and those who still long for the country to become Singapore-on-Thames. Internationally, the likes of Facebook and Google are now facing digital sales taxes in France, Spain and elsewhere, and the OECD is seeking to find a way to ensure that multinationals “pay tax wherever they have significant consumer-facing activities and generate their profits”. Albeit, the current United States administration seems minded to derail these and related measures that seek to ensure that profitable companies pay a minimum rate of tax, wherever they operate.
At the Fair Tax Mark, we will continue to advocate responsible tax conduct and urge progressive businesses to step forward and ‘say what they pay with pride'. We plan to expand our impact in the UK, whilst also establishing new accreditation standards that will allow us to certify businesses incorporated outside the UK for the first time. |
Some years ago, in reply to one of your blogs, I made the point that to get a government or local authority contract, it was necessary for for companies to be ISOO9001 registered.
I suggested that maybe we could persuade the International Standards Organisation to extend their remit to include matters of tax. You replied, from memory, that this was the sort of idea that you welcomed.
I seem to remember from comments at the time that it was agreed that ISSO was not the organisation to do this.
This leads me to suggest that, as with ISSO9001, companies seeking government or local authority contracts, should be required to have Fair Tax Accreditation.
This is such an obvious suggestion, that I hesitate to make it, as almost certainly this is old ground.
If this is the case, and I have missed it, sorry for repeating old ideas.
Of course, ideas are one thing, getting them into common practice or law is another.
A debate continues on whether this is legal under EU competition law
It is still not clear
1 a month since inception, hardly setting the world alight?
Compared with anything equivalent – it’s staggering
David,
I work in local authority procurement. I wouldn’t sign this off as legal (at least while the UK is a member of the EU) and don’t know anyone who would.
For a start, at least while we are still in the EU, public bodies need to apply ‘equal treatment’ across the EU. How does a tenderer from, say, Latvia, bid for a British contract if the FTM is not available to Latvian bidders? If you dispense the requirement for a Latvian tenderer, you will have given it preferential treatment over a British one. Seems unequal treatment of tenderers. An easy challenge.
Also, having seen the FTM website, if this were a procurement requirement, FTM would have to become a lot more transparent – otherwise they almost become an arbiter on who can (and who can’t) win a public contract. As it stands, any decision to award (or refuse an award) seems a private matter between FTM and the applicant.
I’m slightly unsure about the Councils for Fair Tax thing. I haven’t seen it where I work. However, a random check of one of the Councils listed (Oldham) suggests they aren’t doing much. Their standard T&Cs are here: https://www.oldham.gov.uk/downloads/file/3711/terms_and_conditions_-_services. I can’t see any mention of tax.
We are critically aware of the risks