Agenda item - Standing up for responsible tax conduct

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Agenda item

Standing up for responsible tax conduct

Joint motion proposed by Councillor Allcock on behalf of the Labour and Green Groups.

Minutes:

20.1    The Joint Notice of Motion as listed in the agenda was moved by Councillor Allcock, and formally seconded by Councillor Clare.

 

20.2    Councillor Hugh-Jones spoke in favour of the motion.

 

20.3    Councillor McNair advised that the Conservative Group would be abstaining on the motion.

 

20.4    The Mayor then put the following motion to the vote:

 

This Council notes:

·        Around 17.5% of public contracts in the UK have been won by companies with links to tax havens;

·        Two thirds of people (66%) believe the Government and local councils should at least consider a company’s ethics and how they pay their tax, as well as value for money and quality of service provided, when awarding contracts to companies;

 

This Council supports the Councils for Fair Tax Declaration which encourages Councils to:-

1.     Lead by example and demonstrate good practice in our tax conduct, right across our activities;

2.     Ensure IR35 is implemented robustly and contract workers pay a fair share of employment taxes;

3.     Discourage the use of offshore vehicles for the purchase of land and property from the Council, especially where this leads to reduced payments of stamp duty;

4.     Where appropriate, undertake due diligence to ensure that not-for-profit structures are not being used inappropriately by suppliers as an artificial device to reduce the payment of tax and business rates;

5.     Where appropriate, demand clarity on the ultimate beneficial ownership of suppliers UK and overseas and their consolidated profit & loss position, given lack of clarity could be strong indicators of poor financial probity and weak financial standing;

6.     Promote Fair Tax Mark certification especially for any business in which we have a significant stake and where corporation tax is due;

7.     Support Fair Tax Week events in the area, and celebrate the tax contribution made by responsible businesses are proud to promote responsible tax conduct and pay their fair share of corporation tax;

8.     Support calls for urgent reform of UK procurement law to enable local authorities to better penalise poor tax conduct and reward good tax conduct through their procurement policies.

 

20.5    The Mayor confirmed that the motion had been carried. The Conservative Group abstained from the vote.

 

Supporting documents:

 


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