Economists and academics back the Tax Dodging Bill

Support for the Tax Dodging Bill is growing, with a letter appearing in today’s Times from nearly 70 economists and academics backing our call for the next government to introduce a new law to tackle tax dodging in the first hundred days after the election.

You can join over 20,000 people who have already supported the growing call for a Tax Dodging Bill by signing the petition to all the political parties now.

Here’s their letter in full:

Dear Sir,

It has become starkly clear that the global tax system enables multinational corporations to avoid huge sums in tax, both in developed countries like the United Kingdom and in developing countries.  All too often, as the recent scandals in Luxembourg have shown, tax avoidance is made possible by the collusion of governments.

The baleful result is a massive loss of public revenues which could be used to fight poverty in the developed and developing world, as well as a loss of public trust in large companies and governments, coupled with the growth of a corrosive short-termism in parts of the private sector which attempts to avoid as much tax as possible on corporate profits.

The biggest losers from the status quo are those countries least able to protect themselves. The International Monetary Fund has found that tax competition has harmful effects on the corporate tax bases of all countries, but these effects are more than twice as harmful for developing countries, which depend on corporate taxes to a greater extent than developed countries.[1]

So we believe that the United Kingdom, as an avowed supporter of sustainable development and as the home jurisdiction of many multinational companies, needs to take a strong approach to the problem which sets an example to other countries and catalyses firm international action.

This is why we are supporting the call by a coalition of non-governmental organisations, including Oxfam, Christian Aid, Tax Justice Network and ActionAid, for legislation to strengthen the United Kingdom’s rules against tax avoidance at home and abroad.

This legislation should reform any UK tax rules with harmful effects on developing countries and ensure that multinational companies publish detailed reports on their turnover, profits and tax payments in each country where they do business, so as to give the public a much clearer picture of these companies’ tax practices and deter the shifting of profits into tax havens.

Yours sincerely,

Academics Stand Against Poverty, Thomas Pogge

Global Financial Integrity, Raymond Baker

Tax Justice Network, John Christensen

 

Professor Julio Boltvinik, El Colegio de México

Professor Sarah Bracking, University of Manchester

Dr. Angus Cameron, University of Leicester School of Management

Dr. Ludovico Carraro, Oxford Policy Management

Professor Martha Chen, Harvard University

Professor Jean Comaroff, Harvard University

Anna Coote, New Economics Foundation

Professor Olivier De Schutter, University of Louvain

Professor Bob Deacon, University of Sheffield

Enrique Delamonica, UNICEF

Professor Danny Dorling, University of Oxford

Dr. Jean Dreze

Steph Eldridge, King’s College London

Professor Diane Elson, University of Essex,

Professor Rita de la Feria, Chair in Tax Law, Durham Law School

Professor Tim Ensor, University of Leeds

Carlos Fortin, University of Sussex

Professor Des Gasper, International Institute of Social Studies, Amsterdam

Professor Jayati Ghosh, Jawaharlal Nehru University

Wouter van Ginneken

Professor Ilene Grabel, University of Denver

Dr. Jo Marie Griesgraber, New Rules for Global Finance

Professor George Irvin, School of Oriental and African Studies, University of London

Professor Stefano Harney, Singapore Management University

Dr Michael Jennings, School of Oriental and African Studies, University of London

Professor Sir Richard Jolly, University of Sussex

Dr. Inge Kaul

Dr. Majid Kazemi, University of London

Peter Knewell, University of Sussex

Gabriele Koehler

Professor John Langmore, University of Melbourne

Stewart Lansley, University of Bristol

Valerie Leach

Tomas Lievens, Oxford Policy Management

Ian MacAuslan, Oxford Policy Management

Andrew MacGregor, LLM, LLB, UN Resident Coordinator’s Office

David McLachlan-Karr, UN Resident Coordinator & UNDP Resident Representative

Fred Merttens, Oxford Policy Management

Professor Ruth Merttens, Hamilton Trust

Butch Montes, South Center

Mick Moore,University of Sussex

Richard Murphy, Tax Research

Dr Ann Mumford, King’s College London

Jonathan Perraton, Department of Economics, University of Sheffield

Christine Pagnoulle, University of Liege

Professor Ronen Palan, City University, London

Professor Martin Parker, School of Management, University of Leicester

Professor Alicia Puyana Mutis, FLACSO México

Professor Kunibert Raffer, University of Vienna

Dr. Uma Rani, ILO

Nils Riemenschneider, Oxford Policy Management

Ewan Robinson, University of Sussex

Charles Sampford, Foundation Dean of Law and Research Professor of Ethics at Griffith University and Convenor of the Global Integrity Summit

Malcolm Sawyer, Leeds University Business School, University of Leeds

Professor Gita Sen, Indian Institute of Management, Bangalore

Professor Prem Sikka, Essex Business School, University of Essex

Professor Guy Standing, University of London

Professor Frances Stewart, University of Oxford

Dr. John Toye, Oxford University

Professor Rolph van der Hoeven, Erasmus University

Hugh Waddington, Development Economist

Dr. Richard White, Sheffield Hallam University

Professor Rorden Wilkinson, University of Sussex

Dr. Sophie Witter, Queen Margaret University

[1] IMF Policy Paper. Spillovers in International Corporate Taxation. 9th May 2014. Page 20. “And what is notable is that the spillover impacts which emerge from this exercise are more than twice as large in non-OECD as in OECD countries. These losses are in many cases substantial: more than 50 percent of current [corporate income tax] revenue in several cases.”