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17 November 2015

Charities unite to tackle irresponsible tax practices

Charities unite to tackle irresponsible tax practices

Christian Aid, Oxfam and Action Aid are launching a report this week called Getting to Good, highlighting some steps multinational can take towards more responsible tax practices.

The report gives detailed examples of what more responsible tax decisions can do to bring about positive impacts for developing countries and human rights.

Firms are being educated in areas where they can act more responsibly, including practices such as transfer pricing, use of tax incentives and lobbying. 

Companies are also encouraged to publish country-by-country reports before they are legally required to do so, asses and begin to address the human rights impacts of tax behaviour and audit their tax incentives and reliefs on a regular basis.

The charities' report also encourages a move towards a culture of going above and beyond basic legal compliance on tax by recognising the impact of tax on society.

Matti Kohonen, principal adviser on the private sector at Christian Aid, said: “Christian Aid knows it takes courage for companies to go beyond the law, for instance by making financial details public in every country where they operate.

"We hope that this report will encourage them to move in the right direction. Such a shift will be welcomed as vital for tackling poverty and growing inequality in the developing world.

"Public opinion is changing rapidly and companies are increasingly expected to take positive action on this issue."

You can find out more about the report here, by visiting the Getting To Good website here.