This press release has been issued by Downing Street today:\u00a0<\/b><\/p>\n
The Prime Minister will announce further steps to crackdown on tax evasion by tackling the secrecy that shrouds the ownership of companies, in a speech to the Open Government Partnership Summit in London today (Thurs).<\/p>\n
The Prime Minister will announce plans - backed by business leaders and charities - to make public a central registry on beneficial ownership. The decision builds on his ambitious agenda at the G8 Summit to increase transparency - on tax, on payments for natural resources, on open data and on property rights.<\/p>\n
The Prime Minister will make clear that we need to build on the G8 agreement which committed leaders to action in all of these areas. And ensure that now Governments now translate these words into action delivering benefits for hard working people.<\/p>\n
The Prime Minister is expected to say:<\/p>\n
\u201cFor too long a small minority have hidden their business dealings behind a complicated web of shell companies - and this cloak of secrecy has fuelled all manners of questionable practice and downright illegality.<\/i><\/p>\n
\u00a0\u201cIllegality that is bad for the developing world \u2014 as corrupt regimes stash their money abroad under different identities. And illegality that is bad for Britain\u2019s economy too \u2014 as people evade their taxes through untraceable trails of paperwork.<\/i><\/p>\n
\u201cNot only is this hugely unfair to the millions of hardworking people in Britain who pay their tax but it\u2019s also bad for business. To keep corporate taxes low, you\u2019ve got to keep corporate taxes coming in. As I\u2019ve put it, no tax base \u2014 no low tax case.<\/i><\/p>\n
\u201cSo that\u2019s why we need to shine a spotlight on who owns what and where money is really flowing.<\/i><\/p>\n
\u201cThis summer at the G8 we committed to do just that \u2014 to establish a central register of company beneficial ownership. And today I\u2019m delighted to announce that not only is that register going to go ahead - but that it\u2019s also going to be open to the public.<\/i><\/p>\n
\u201cSome people will question whether it\u2019s right to make this register public. Surely we could get the same effect just by compiling the information and using it within government?<\/i><\/p>\n
\u201cNow, of course we in government will use this data to pursue those who break the rules. And we\u2019re going to do it relentlessly. But there are so many wider benefits to making this information available to everyone.<\/i><\/p>\n
\u201cIt\u2019s better for businesses here \u2014 who will be able to better identify who really owns the companies they\u2019re trading with. It\u2019s better for developing countries \u2014 who will have easy access to all this data without submitting endless requests for each line of enquiry. And it\u2019s better for us all to have an open system which everyone has access to \u2014 the more eyes that look at this information, the more accurate it will be.\u201d<\/i><\/p>\n
The Prime Minister will call on other countries to join the UK in this approach as he makes clear that an open and transparent Government is a vital part of any country\u2019s plan for prosperity and its ability to succeed in the global race.<\/p>\n
Welcoming the decision, Dr Roger Barker, Director of Corporate Governance and Professional Standards at the Institute of Directors, said:<\/p>\n
\"The IoD welcomes the government's decision to create a register of beneficial ownership for UK companies. From a governance perspective, it is right that the true owners of companies should be transparent both to the company itself and the wider business community. Using the corporate veil to obscure underlying ownership brings the corporate sector into disrepute and creates significant opportunities for wrongdoing or criminal activity. Significant practical challenges remain in order to ensure that any register of beneficial ownership is accurate and robust, but we support government efforts to begin this process\".<\/i><\/p>\n
And Gavin Hayman, Director of Global Witness, said:<\/p>\n
\u00a0\"Anonymous shell companies are the global getaway cars for crime, corruption and tax evasion. Full credit should go to the Prime Minister and the business secretary for acting to take away the keys.\u201d<\/i><\/p>\n
Chris Bain, Director of CAFOD and President of CIDSE, said:<\/p>\n
'We welcome the UK government's announcement of a public register of who owns and controls companies. Earlier this year the G8 showed that transparency is now the norm for both governments and business and this step further builds on that. It is both the right thing to do as it will support the global fight against money laundering and tax evasion, and also shows that the\u00a0government\u00a0has listened to public opinion. Above all it will be vital for our international partners in their fight to prevent resources intended for poverty eradication being siphoned off. We will continue to\u00a0work with\u00a0the\u00a0government to make sure that this\u00a0register\u00a0has comprehensive coverage, and with other governments to introduce comparable measures'<\/i><\/p>\n
The Prime Minister will be joined by a number of world leaders including the Presidents of Tanzania, Liberia, and fellow co-chair Indonesia at the OGP summit. He will open the two day event with attendees from other OGP countries, senior representatives from international civil society organisations, from the private sector, and from international bodies including the World Bank and OECD.<\/p>\n
Background:<\/b><\/p>\n
\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0The Open Government Partnership (OGP) was formally launched in September 2011 in New York. It is a multilateral initiative, bringing together member states and civil society organisations, that aims to secure concrete commitments from governments to promote transparency, empower citizens, fight corruption, and harness new technologies to strengthen governance.<\/p>\n
\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0The UK was one of eight founding nations and at the formal launch of the OGP (20 September 2011), the UK endorsed an Open Government Declaration and presented its first National Action Plan.<\/p>\n
\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0The UK is currently lead-co chair alongside Indonesia and civil society representatives<\/p>\n","protected":false},"excerpt":{"rendered":"