Posts Tagged ‘Crown Dependencies’

Vox Political: Miliband Challenges Businesses on Tax Havens

February 7, 2015

Mike over at Vox Political also has this story on Ed Miliband stating that a future Labour government will demand greater transparency and social responsibility from tax havens and the governments that operate them. Under the proposed new laws, these havens will be required to provide publicly accessible registers of who owns the companies registered in them. The article’s called Labour’s ultimatum to tax havens and it begins

Ed Miliband has warned the tax havens costing British families and businesses billions of pounds that they will have just six months to put their house in order and open their books – or face being placed on an international blacklist.

He has highlighted figures showing that, despite David Cameron boasting more than 18 months ago that he had forced tax havens to open up, not one of the tax havens linked to Britain as Overseas Territories or Crown Dependencies has yet delivered on Cameron’s promise that they would publish a register showing who owns the companies registered there – and some have explicitly refused to do so.

The lack of leadership shown by the UK government has frustrated and slowed the pace of reform on tax avoidance across the world.

In a letter to heads of government, Mr Miliband served notice on them that that under the next Labour government they will have six months to publish publicly-accessible central registers of beneficial ownership.

If they fail to meet this deadline, the next Labour government will withdraw the protection they get from international scrutiny and ask the Organisation for Economic Co-operation and Development to place them on its tax haven blacklist.

Miliband makes the point that his insistence that big business pays its fair share of tax is not an attack on business. It is pro-business, as the money so raised will be spent on the infrastructure Britain needs, including those businesses that do pay their whack. He contrasts this with the government’s programme of further cuts. Miliband says

“Today, we have a government planning real cuts in spending on schools but one that only postures—and does not act over the scandal of tax avoidance.

“Let me say to the Prime Minister: It is not pro-business to defend tax avoidance.

“Britain is losing billions of pounds in lost revenue that could be invested in our future. It is costing everyone who pays their fair share of taxes, including millions of British businesses.

“Businesses and working people who pay their taxes, do the right thing and play by the rules are affronted by tax avoidance – and they are fed up with a government that has failed to act.”

He said: “The current Conservative leadership have become the political wing of offshore hedge funds.

Much of the system of tax avoidance was put in place by Blair and Brown. It’s good that Miliband has re-thought this policy, and is now trying to end at least some of its excesses. It contrasts strongly with that of the Tories, who believe, like that the ancient aristocracy, that as aristos they shouldn’t have to pay tax.