It was moved by Councillor Lewis, seconded by Councillor Brodie - Browne:
“(1) The Council notes:
· It has been estimated that the UK Treasury loses as much as £12 billion to tax dodging by multinational companies every year. Developing countries lose three times more to tax dodging than they receive in aid each year - enough to give a basic education to the 57 million children currently missing out.
· The UK has a particular responsibility to end tax dodging, as it is responsible for 1 in 5 of the world’s tax havens in the British Overseas Territories and Crown Dependencies.
· The use of tax havens by UK companies is rife, with 98 of the FTSE 100 companies routinely using tax havens.
· Large multinational companies pay as little as 5% in corporate taxes globally, while smaller businesses pay up to 30%.
(2) The Council believes:
· As a local authority we have a duty to provide the best possible public services.
· Our ability to provide quality local services would be significantly enhanced by the increased revenues from the government tackling tax dodging.
· All who benefit from public spending should contribute their fair share; and
· The UK must take a lead role in creating a fairer tax system and combatting tax dodging.
(3) The Council resolves to support the Campaign for Tax Justice, supporting the following motion:
“While many ordinary people face falling household income and rising costs of living, some multinational companies are avoiding billions of pounds of tax from a tax system that fails to make them pay their fair share. Local governments in developing countries and the UK alike would benefit from a fairer tax system where multinational companies pay their fair share, enabling authorities around the world to provide quality public services. The UK Government must listen to the strength of public feeling and act to end the injustice of tax dodging by large multinational companies, in developing countries and the UK.”
An amendment was moved by Councillor McKinley, seconded by Councillor Maher that the Motion be amended by the addition of the following text at the end of the Motion:
· Welcomes the commitment from the Labour Party to reduce tax fraud by £1 billion to contribute to protecting and developing the NHS; and
· Calls on the Government to introduce a General Anti-Tax Avoidance Principle to expand the scope of the current General Anti-Abuse Rule to cover tax avoidance, whether domestic or international, and secondly, by providing an objective test for what is and is not within the scope of the measure, provide a principles based approach to tackling this issue to remove the deeply subjective elements of the Rule that in practice makes it almost impossible to use.”
Following debate thereon, on a show of hands, the Mayor declared that the amendment was carried by 35 votes to 18 with one abstention.
Thereafter, on a show of hands, the Mayor declared that the Substantive Motion was carried by 45 votes to none with seven abstentions and it was
RESOLVED:
That:
(1) The Council notes:
· It has been estimated that the UK Treasury loses as much as £12 billion to tax dodging by multinational companies every year. Developing countries lose three times more to tax dodging than they receive in aid each year - enough to give a basic education to the 57 million children currently missing out.
· The UK has a particular responsibility to end tax dodging, as it is responsible for 1 in 5 of the world’s tax havens in the British Overseas Territories and Crown Dependencies.
· The use of tax havens by UK companies is rife, with 98 of the FTSE 100 companies routinely using tax havens.
· Large multinational companies pay as little as 5% in corporate taxes globally, while smaller businesses pay up to 30%.
(2) The Council believes:
· As a local authority we have a duty to provide the best possible public services.
· Our ability to provide quality local services would be significantly enhanced by the increased revenues from the government tackling tax dodging.
· All who benefit from public spending should contribute their fair share; and
· The UK must take a lead role in creating a fairer tax system and combatting tax dodging.
(3) The Council resolves to support the Campaign for Tax Justice, supporting the following motion:
“While many ordinary people face falling household income and rising costs of living, some multinational companies are avoiding billions of pounds of tax from a tax system that fails to make them pay their fair share. Local governments in developing countries and the UK alike would benefit from a fairer tax system where multinational companies pay their fair share, enabling authorities around the world to provide quality public services. The UK Government must listen to the strength of public feeling and act to end the injustice of tax dodging by large multinational companies, in developing countries and the UK.
(4) The Council:
· Welcomes the commitment from the Labour Party to reduce tax fraud by £1 billion to contribute to protecting and developing the NHS; and
· Calls on the Government to introduce a General Anti-Tax Avoidance Principle to expand the scope of the current General Anti-Abuse Rule to cover tax avoidance, whether domestic or international, and secondly, by providing an objective test for what is and is not within the scope of the measure, provide a principles based approach to tackling this issue to remove the deeply subjective elements of the Rule that in practice makes it almost impossible to use.