Labour’s proposals also include urging multinational corporations that secure government contracts to provide tax information on a country-by-country basis, declaring information such as revenue, profit, taxes paid, employee numbers and assets in each country they are registered in. While global companies like Apple or Amazon have received widespread criticism for registering profits in countries with lower corporation tax, other lesser-known brands that are contracted by UK local authorities – such as elderly care providers – have been known to register profits overseas.
The party would also use a publicly accessible digital dashboard to track all procurement contracts, as well as keeping a record of all suppliers and their beneficial ownership.
Speaking to openDemocracy, Rayner said: “While the Tories cut murky deals in the dark with their mates using taxpayers’ money, Labour will tender in the public interest, keep the receipts and publish them out in the open because the public deserves the truth and transparency about their taxes.
“Our contracts dashboard will finally ingrain honesty and openness into the heart of public spending, with transparent information about all contracts awarded and suppliers who fail to deliver.”
The UK loses an estimated £17bn in corporation tax revenues as a result of profit-shifting alone when companies report their profit in a tax haven, according to the Fair Tax Foundation, a UK-based not-for-profit social enterprise that seeks to encourage businesses “to pay the right amount of corporation tax at the right time and in the right place”.
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