Asked in the Commons about the effective rate of tax paid by Google in the UK, Treasury Minister David Gauke refused to say on grounds of “taxpayer confidentiality.” Evasive replies of this kind – a typical variant is “commercial confidentiality” – are rarely, if ever, challenged. As well as being a convenient refuge, confidentiality conveys an air of sanctity, so that mere reference to the word may suffice to quell further enquiry. In many cases, however, and this is one, officials taking shelter under the confidentiality umbrella are probably doing so either to disguise their ignorance or to conceal the truth. Because although some significant information remains out of sight, a great deal that is relevant, useful and enlightening – notably in the case of U.S. corporations – is readily available to public view.
Much can be gleaned from annual reports, copies of which can generally be obtained from corporate finance departments, especially if the inquirer is willing to pose as a potential shareholder. More revealing, perhaps, is the Form 10-K that all US corporations with sales above $10 million are obliged to file annually with the US Securities and Exchange Commission (SEC). Form 10-K filings are available to the public without charge via EDGAR the SEC database, and their level of detail makes the UK’s Companies House equivalent seem trivial by comparison.
