Companies urged to be upfront about tax
The boss of the biggest employers’ body has called companies to take steps to demonstrate that not only are their tax affairs legal, but also that they are ‘responsible’ taxpayers.
John Cridland, director-general of the CBI, made the call in light of an Ipsos Mori poll finding that almost a quarter of the public have avoided a company because of its tax affairs.
“The misconception that businesses don’t pay the right amount of tax will continue unless they can clearly show how they are behaving as responsible taxpayers,” Mr Cridland said.
He believes that although firms have made “some progress” in addressing the misconception, all companies should go further by now clearly setting out their tax affairs on their website.
“It’s clear that without their [businesses’] £175 billion tax contribution we simply wouldn’t be able to afford the services we all rely on,” Mr Cridland said.
“By being upfront about tax, British business can remain strong and competitive, so everyone benefits from its value.”
According to the poll, 64% of people think that firms “don’t care” whether the public think they pay their ‘fair share’ of tax, and almost as many think firms don’t pay their fair share.
Almost eight in ten think it is the government’s responsibility to ensure that businesses pay the right amount of tax by making the rules clear, enforcing them and closing loopholes.
And in a finding that George Osborne might seize upon in Autumn Statement 2015 next month, nearly three quarters of people think the government is “not doing enough” to prevent corporate tax avoidance.
Editor’s Note: Related Reading –
No legal duty to avoid tax, company directors told
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