Nearly 75% of government contractors are based in tax havens

“Almost three-quarters of companies who have been given major government contracts have operations based in tax havens, according to a new report.

Value Added, published on Sunday by the thinktank Demos, reveals that 25 of the government’s 34 strategic suppliers – organisations that receive £100m or more in revenue from the government – operate in offshore centres.

According to estimates, they account for about a fifth of total central government procurement spend. Of these, 19 had operations in jurisdictions included on the EU’s “blacklist” or “greylist” of countries that are considered to be non-compliant with EU international standards for “good tax behaviour”, according to the report.

The Labour MP and former chair of the public accounts committee, Margaret Hodge, said it was “perverse that the government continues to pay significant sums of taxpayer money to big corporations that practise tax avoidance on an alarming scale”.

There are claims that aggressive use of tax havens can distort competition.

The Labour peer, Lord Haskel, added: “For too long large international tech companies have failed to pay their fair share of tax while being rewarded with government contracts, leaving British companies at a competitive disadvantage.”

The Demos report states: “Large multinational companies, for example, continue to squeeze their tax contributions ever lower: the OECD estimates that US$100–$240bn (£78bn-£186bn) is lost globally in revenue each year from base erosion and profit shifting by multinational companies.” …”

https://www.theguardian.com/world/2019/oct/20/tax-havens-uk-government-pays-millions-strategic-suppliers?CMP=Share_iOSApp_Other

2 thoughts on “Nearly 75% of government contractors are based in tax havens

  1. Yes, and I’ve just sent the following to several papers and to Labour MPs likely to vote for the bill:
    Ever been conned?
    According to the thinktank Demos it is estimated that between £78 billion and £186 billion are lost every year to UK tax revenues from multinational offshore companies. And yet three quarters of our present government’s contracts are with some of these very companies.
    No wonder that they and many in the Tory Party, especially on its Far Right, want us out of the EU – because the EU have threatened to curb offshore tax evasion.
    And it is these powerful conglomerates who control most of our newspapers and media.
    On the other hand, it is the less well-off who will suffer most under a Tory brexit just as they did under the Tory Austerity programme which vastly increased the gap between the rich and the poor. Sadly, however, many of the less well-off were persuaded by the media and the Leave campaigns to
    blame the EU and not the Tories for their hardship.
    The idea, therefore, that the current Tory government under Boris Johnson is on the side of the “people” is a cruel lie and a mockery of democracy.

    Like

  2. So tax haven coffers are being filled with our money; sordid, corrupt & shameful. No wonder so many people are being left bereft and squeezed into poverty; while the rich get richer, the poor get poorer. Start taking a look at your local Local Enterprise Partnership for starters.

    Like

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