While tax dodging is currently costing the UK economy £12bn a year, co-operatives have been at the forefront of a campaign designed to encourage businesses to make decisions that promote tax transparency and fairness.
Launched last year with support from co-operative enterprises, the Fair Tax Mark is the world’s first independent scheme for businesses that are transparent about their tax affairs. So far 10 enterprises have obtained the Fair Tax Mark accreditation, including the Midcounties Co-operative, the Phone Co-op and East of England Co-operative. As Fair Tax Mark certified enterprises they are all publicly committed to paying the right amount of tax, in the right place, at the right time.
Secretary general of Co-operatives UK, Ed Mayo, said: “All great campaigns for social progress are based on a simple moral truth - here that it is right to pay your fair share of taxes. Paying taxes is an essential act of social co-operation, and an expression of responsibility. It is right to call time on the practice of tax evasion in all its forms and to stand up for the society we live in.
“We were really proud that we were the first to adopt this. Typically, we may be less payer of tax, as social businesses, co-ops are there to create member value so may not be involved in some of the taxation that other companies are involved in and don’t have some of the complexities in terms of tax.” He added that the Fair Tax Mark could help businesses, including co-ops, differentiate themselves from competitors. However, consumers need to know and understand what the Fair Tax Mark was, he explained. Over 80 marks already exist within the UK’s retail sector.
The Phone Co-op and the Midcounties Co-operative have been the pioneers of the mark, leading by example. Other businesses have now been accredited, including Lush Cosmetics, SSE, one of the big six energy providers in the UK, and Bytemark Hosting, which is among the 50 fastest growing tech companies in the North region.
Co-operatives have also joined the Tax Dodging Bill, a call to address tax dodging by multinational companies. The campaign aims to make it harder for big companies to dodge UK taxes, stop them from getting unjustified tax breaks and make the UK tax regime more transparent. The Tax Dodging Bill is backed by a number of organisations which call on the government to consider it.
Individuals can also show their support for fair tax by signing the Fair Tax Pledge, which was launched on 12 June at the Fair Tax Conference in London. By signing the pledge they commit to declare all their income and that of their companies, openly, honestly and on a timely basis. Individuals also agree not to use tax heavens or tax avoidance arrangements to reduce any tax that they owe.
Photo: Ed Mayo speaking at the Fair Tax Conference
