Labor has accused Boris Johnson of turning a blind eye to tax havens, as the party released new research showing that £44bn of public money has gone into contracts for companies that are tied to areas of concern .
About eight in 10 (77.5 percent) of the government’s “strategic suppliers”, who largely provide services and goods to public sector organizations, have one or another kind of relationship with tax havens – often small islands. Sectors that attract businesses keeping corporation tax rates ultra-low – said Labor.
And under Mr Johnson the ratio is rising from an estimated 73.5 per cent in 2019 when he took office.
The party is calling on Chancellor Rishi Sunak to throw the UK’s weight behind a global minimum corporate tax rate of 21 per cent at a crucial meeting of the G20 group of finance ministers later this month.
A global rate came a step closer on Friday with an agreement of 136 countries and jurisdictions – many of which include branded tax havens – to implement a 15 percent minimum tax from 2023, as well as to ensure that from 10 One-fourth of any profit above. The percentage made by global firms is reallocated for tax purposes to the countries in which they operate.
After years in which multinationals, including online tech giants, have been accused of underfunding payments by shifting profits to countries with zero or low tax regimes, Mr Sunak said the agreement provided “a clear call for a fair tax system”. Paved the way, where the big global players pay their fair share wherever they do business.”
But Labor accused the chancellor of standing in the way of at least the 21 percent minimum initially proposed by US President Joe Biden, based on proposals drawn up by the Organization for Economic Co-operation and Development (OECD). .
Labor did not make any specific allegations against individual companies in its analysis of government contracts.
Credit: www.independent.co.uk /