It also warns that the UK is not in a position to meet one of the changes the government says it supports at the G8 – company registers to assist information exchanges between countries – because the UK does not have a proper register of trusts or require the registration of the beneficial owners of UK companies. The TUC briefing says that in order to be effective the G8 summit needs to:
- Use the new structures already required by US tax rules to introduce full multilateral automatic information exchange (AIE) of overseas earnings and holdings whether held by individuals or within trusts, companies or other structures.
- Ensure that all tax havens are included in any new agreements on AIE.
- Agree full disclosure of the beneficial owners of trusts, companies and other legal structures. These should be open to all and not just tax authorities.
- Support radical action by the G20 to tackle companies such as Google, Apple and Starbucks who do not appear to pay tax where they earn their profits. This should include country-by-country reporting.
- Involve developing countries and the UN in the multinational forums that are discussing tax and provide them with the technical help they need.
The TUC briefing comes as new polling published today by the International Trade Union Confederation (ITUC) shows that 85 per cent of voters in 13 countries (including six G8 economies) support policies to stop large and multi-national corporates avoiding tax.
The UK is ranked top of the G8 countries polled in terms of voter support to curb tax havens, with 96 per cent of voters in support of policies. Germany is second in terms of support (91 per cent), followed by Canada (88 per cent), France (82 per cent), Russia (75 per cent) and Japan (74 per cent).
TUC General Secretary Frances O’Grady said: “It has taken years of campaigning to get governments to take tax justice seriously. But with voters across the globe hit by austerity and spending cuts, no politician can now ignore the corporations and super-rich individuals who say that tax is for the little people. But while we can welcome the intentions, the test will be in the delivery. Warm words will not be enough. This is why we have set the summit five tests, and warn the Prime Minister that he cannot be taken seriously in calling for the real owners of trusts and companies to be registered until the UK sets up its own register."
Commenting on the poll findings, ITUC General Secretary Sharan Burrow said: "Workers are paying for the financial crisis with their jobs, while corporations are denying ailing economies the revenue they so badly need. The sheer scale of tax evasion revealed by one corporate tax scandal after another is matched only by the injustice to workers and their families. In developing countries in particular, national economies are robbed of revenues which could be used to address critical needs of such as food security, health, poverty alleviation and education."
David Cameron says his priority during the G8 Presidency will be the global economy. He has said that he will use the UK’s Presidency to help generate growth, jobs and prosperity for the long term. To achieve this, he says that the UK will focus on open economies, open governments and open societies to support free trade, tackle tax evasion and encourage great transparency and accountability. He has put particular emphasis on dealing with tax issues.
