How Britain (and others) are enabling multinational corporations to undermine the tax base of nation states
“Companies have a responsibility to pay corporation tax in the jurisdictions where they operate. Citizens are already losing faith in their banks and the financial system. If big corporations fail to pay tax and leave it to SMEs and middle income groups, it will undermine democracy. This is about the survival of democracy.”
And who says this? Not a Left-wing anti-globalisation activist, but Angel Gurria, the head of the Organisation for Economic Co-operation and Development, as he launches an OECD report with the thrilling title of “Addressing Base Erosion and Profit Shifting” which is to be delivered to G20 finance ministers.
As explained in this article:
“The UK is at the centre of the debate after the OECD and International Monetary Fund found that former colonies and British crown protectorates were key destinations for funds that have avoided tax. Figures show that, in 2010, Barbados, Bermuda and the British Virgin Islands received more foreign direct investment than Germany or Japan.”
And who suffers? Every citizen in higher tax and poorer public services.