Oxfam’s latest report, revealing a stash of £4.7tn in British Overseas tax havens, calls Cameron’s G8 Summit leadership in June “a mockery” when there is no deal on the table to help poor countries reclaim over £100bn they are owed. The UK has “consistently opposed” reforming the tax system for Transnational Corporations (TNCs), claims the Tax Justice Network.
David Cameron's assault on tax evasion by TNCs and high-wealth individuals is "all mouth and trousers", Oxfam's latest press release shows. The use of tax havens is depriving the world of enough money to end extreme poverty - twice over.
Emma Seery, Oxfam's Head of Development Finance and Public Services, said: "These figures put the UK at the centre of a global tax system that is a colossal betrayal of people here and in the poorest countries who are struggling to get by, and put the government on the side of the privileged few".
In December the Tax Justice Network published its proposals for taxing multinationals,"Towards Unitary Taxation of Transnational Corporations" by Sol Picciotto, emeritus professor at Lancaster University. But the current OECD rules still allow TNCs to shift their profits to the most favourable tax havens around the globe. And in 2010 HMRC boss Dave Hartnett allegedly let Vodafone off £4.8bn of tax in a "sweetheart" deal.
Unitary taxation would tax modern multinational companies such as Google and Amazon according to where their genuine economic activity is, rather than where their tax advisers pretend it is.