A Conservative MP has written to the chief executives of all FTSE 100 companies seeking their support for ‘corporate tax transparency’ and a new international accounting standard requiring country-by-country reporting of profits and taxes paid.
‘There is growing anger and concern that some large companies are hiding behind complex accounting rules that may be strictly legal, but are considered to be unethical by the public. The problem of missing billions in tax is not just a problem in the UK, it is worldwide and does the greatest damage to poor and developing countries who cannot stand up to massive corporations,’ Stephen McPartland wrote on his website.
He intends to publish ‘a list of all the company responses’ so that ‘the general public know which FTSE 100 companies are willing to sign up to tax transparency and which are not’.
International Tax Review quoted a Christian Aid spokesperson as saying: ‘Mr McPartland’s initiative is the latest evidence that governments, parliamentarians of all parties, and civil society are united in their opposition to tax dodging. Businesses must heed these calls and usher in a new era of ethical, sustainable tax planning.’
Earlier this month another Conservative MP, Charlie Elphicke, told the BBC’s Newsnight that substantial reform was needed to bring the business tax system up to date. ‘After the financial crisis, playing the system is no longer acceptable,’ he said.
McPartland’s announcement followed a visit to Stevenage by Christian Aid’s ‘tax justice bus’. He wrote: ‘It is time for a concerted international effort to tackle corporate tax avoidance and for multinational companies to actually commit to tax transparency. I know governments from all around the world will agree with the sentiments of greater tax transparency, but they will struggle to introduce it as every nation competes in the global race. Therefore, it will be up to the companies themselves to lead the way and they will only do that if their customers, the British public in many cases, drag them kicking and screaming towards tax transparency and a fairer tax system for us all.’
McPartland noted that in August, MPs on the International Development Select Committee said the UK government should enact legislation requiring each UK-based multinational corporation to report its financial information on a country-by-country basis. The government should also conduct or commission ‘as a matter of urgency’ an analysis of the likely financial impact on developing countries of the revised controlled foreign companies rules, the committee said in a report on the link between taxation and development.
A Conservative MP has written to the chief executives of all FTSE 100 companies seeking their support for ‘corporate tax transparency’ and a new international accounting standard requiring country-by-country reporting of profits and taxes paid.
‘There is growing anger and concern that some large companies are hiding behind complex accounting rules that may be strictly legal, but are considered to be unethical by the public. The problem of missing billions in tax is not just a problem in the UK, it is worldwide and does the greatest damage to poor and developing countries who cannot stand up to massive corporations,’ Stephen McPartland wrote on his website.
He intends to publish ‘a list of all the company responses’ so that ‘the general public know which FTSE 100 companies are willing to sign up to tax transparency and which are not’.
International Tax Review quoted a Christian Aid spokesperson as saying: ‘Mr McPartland’s initiative is the latest evidence that governments, parliamentarians of all parties, and civil society are united in their opposition to tax dodging. Businesses must heed these calls and usher in a new era of ethical, sustainable tax planning.’
Earlier this month another Conservative MP, Charlie Elphicke, told the BBC’s Newsnight that substantial reform was needed to bring the business tax system up to date. ‘After the financial crisis, playing the system is no longer acceptable,’ he said.
McPartland’s announcement followed a visit to Stevenage by Christian Aid’s ‘tax justice bus’. He wrote: ‘It is time for a concerted international effort to tackle corporate tax avoidance and for multinational companies to actually commit to tax transparency. I know governments from all around the world will agree with the sentiments of greater tax transparency, but they will struggle to introduce it as every nation competes in the global race. Therefore, it will be up to the companies themselves to lead the way and they will only do that if their customers, the British public in many cases, drag them kicking and screaming towards tax transparency and a fairer tax system for us all.’
McPartland noted that in August, MPs on the International Development Select Committee said the UK government should enact legislation requiring each UK-based multinational corporation to report its financial information on a country-by-country basis. The government should also conduct or commission ‘as a matter of urgency’ an analysis of the likely financial impact on developing countries of the revised controlled foreign companies rules, the committee said in a report on the link between taxation and development.
