To be moved by Councillor Read and seconded by Councillor Griffin:
That
this Council notes that:-
1.
The pressure on organisations to pay their fair share of tax has
never been stronger.
2.
Polling from the Institute for Business Ethics finds that
“corporate tax avoidance” has, since 2013, been the
clear number one concern of the British public when it comes to
business conduct.
3.
Two thirds of people (66%) believe the Government and local
councils should at least consider a company’s ethics and how
they pay their tax, as well as value for money and quality of
service provided, when awarding contracts to companies.
4.
Around 17.5% of public contracts in the UK have been won by
companies with links to tax havens.
5.
It has been conservatively estimated that losses from multinational
profit-shifting (just one form of tax avoidance) could be costing
the UK some £17bn per annum in lost corporation tax
revenues.
6.
The Fair Tax Mark offers a means for business to demonstrate good
tax conduct, and has been secured by a wide range of businesses
across the UK, including FTSE-listed PLCs, co-operatives, social
enterprises and large private businesses.
That this Council believes that:
1. Paying tax is often presented as a burden, but it shouldn’t be.
2. Tax enables us to provide services from education, health and social care, to flood defence, roads, policing and defence. It also helps to counter financial inequalities and rebalance distorted economies.
3.
As recipients of significant public funding, local
authorities should take the lead in the promotion of exemplary tax
conduct; be that by ensuring contractors are paying their proper
share of tax, or by refusing to go along with offshore tax dodging
when buying land and property.
4.
Where councils hold substantive stakes in private
enterprises, influence should be wielded to ensure that such
businesses are exemplars of tax transparency and tax avoidance is
shunned.
5.
More action is needed, however, as current and
proposed new UK procurement law significantly restricts
councils’ ability to either penalise poor tax conduct (as
exclusion grounds are rarely triggered) or reward good tax conduct,
when buying goods or services.
6.
UK cities, counties and towns can and should stand
up for responsible tax conduct - doing what they can within
existing frameworks and pledging to do more given the opportunity,
as active supporters of international tax justice.
This Council therefore resolves to:
1.
Approve the Councils for Fair Tax Declaration.
2.
Lead by example and demonstrate good practice in our tax conduct,
right across our activities.
3.
Ensure IR35 is implemented robustly and contract workers pay a fair
share of employment taxes.
4.
Not use offshore vehicles for the purchase of land and property,
especially where this leads to reduced payments of stamp
duty.
5.
As far as possible, to undertake due diligence to ensure that
not-for-profit structures are not being used inappropriately by
suppliers as an artificial device to reduce the payment of tax and
business rates.
6.
As far as possible, to demand clarity on the
ultimate beneficial ownership of suppliers UK and overseas and
their consolidated profit & loss position, given lack of
clarity could be strong indicators of poor financial probity and
weak financial standing.
7.
Promote Fair Tax Mark certification especially for
any business in which we have a significant stake and where
corporation tax is due.
8.
Support Fair Tax Week events in the area, and
celebrate the tax contribution made by responsible businesses are
proud to promote responsible tax conduct and pay their fair share
of corporation tax.
9. Support calls for urgent reform of UK procurement law to enable local authorities to better penalise poor tax conduct and reward good tax conduct through their procurement policies.
Minutes:
It was moved by Councillor Read and seconded by Councillor Griffin:
That this Council notes that:-
1.
The pressure on organisations to pay their fair share of tax has
never been stronger.
2. Polling from the Institute for Business Ethics finds that “corporate tax avoidance” has, since 2013, been the clear number one concern of the British public when it comes to business conduct.
3. Two thirds of people (66%) believe the Government and local councils should at least consider a company’s ethics and how they pay their tax, as well as value for money and quality of service provided, when awarding contracts to companies.
4. Around 17.5% of public contracts in the UK have been won by companies with links to tax havens.
5. It has been conservatively estimated that losses from multi-national profit-shifting (just one form of tax avoidance) could be costing the UK some £17bn per annum in lost corporation tax revenues.
6. The Fair Tax Mark offers a means for business to demonstrate good tax conduct, and has been secured by a wide range of businesses across the UK, including FTSE-listed PLCs, co-operatives, social enterprises and large private businesses.
That this Council believes that:
1. Paying tax is often presented as a burden, but it shouldn’t be.
2. Tax enables us to provide services from education, health and social care, to flood defence, roads, policing and defence. It also helps to counter financial inequalities and rebalance distorted economies.
3.
As recipients of significant public funding, local authorities
should take the lead in the promotion of exemplary tax conduct; be
that by ensuring contractors are paying their proper share of tax,
or by refusing to go along with offshore tax dodging when buying
land and property.
4. Where councils hold substantive stakes in private enterprises, influence should be wielded to ensure that such businesses are exemplars of tax transparency and tax avoidance is shunned.
5. More action is needed, however, as current and proposed new UK procurement law significantly restricts councils’ ability to either penalise poor tax conduct (as exclusion grounds are rarely triggered) or reward good tax conduct, when buying goods or services.
6.
UK cities, counties and towns can and should stand up for
responsible tax conduct - doing what they can within existing
frameworks and pledging to do more given the opportunity, as active
supporters of international tax justice.
This Council therefore resolves to:
1. Approve the Councils for Fair Tax Declaration.
2. Lead by example and demonstrate good practice in our tax conduct, right across our activities.
3. Ensure IR35 is implemented robustly and contract workers pay a fair share of employment taxes.
4. Not use offshore vehicles for the purchase of land and property, especially where this leads to reduced payments of stamp duty.
5. As far as possible, to undertake due diligence to ensure that not-for-profit structures are not being used inappropriately by suppliers as an artificial device to reduce the payment of tax and business rates.
6. As far as possible, to demand clarity on the ultimate beneficial ownership of suppliers UK and overseas and their consolidated profit & loss position, given lack of clarity could be strong indicators of poor financial probity and weak financial standing.
7. Promote Fair Tax Mark certification especially for any business in which we have a significant stake and where corporation tax is due.
8. Support Fair Tax Week events in the area and celebrate the tax contribution made by responsible businesses are proud to promote responsible tax conduct and pay their fair share of corporation tax.
9. Support calls for urgent reform of UK procurement law to enable local authorities to better penalise poor tax conduct and reward good tax conduct through their procurement policies.
It was noted during the meeting that an administrative error had led to points 6,7,8 and 9 from the resolution being omitted at publication. Members had been made aware of this error prior to the meeting and given additional time in which to raise amendments. However, no amendments had been received.
Resolved:-
On being put to the vote, the motion was declared as carried.
Mover:- Councillor Read Seconder:- Councillor Griffin