Google, Amazon, Vodafone and Apple are just a few of the multinationals which have made the headlines in recent months, but not only because of the revolutionary products and services upon which so many of us rely.
Over the past few months, the aforementioned companies, amongst many others, have received stark warnings over heinous tax avoidance schemes. Towards the end of December, it was revealed that Apple owes at least €880m in tax to the Italian government. Only in the same month had a startling report been published detailing over 500 corporations who had not paid their fair share in Australia, and this month it has come to light that Google has failed to pay anywhere near its 20% corporation tax. It seems that there will be no end to the corporation tax saga anytime soon.
Whilst our government takes away support for those whom day-to-day struggles for necessities is a reality, we should in fact be turning our attention to the activities of big business.
Many of the most prominent household name brands are simply not punished enough for this staggering wrongdoing. The extent of tax exploitation indeed involves only the very few, but the extent of the problem is far-reaching. In actual fact, Google has only had to pay back £130m in taxes, a mere fraction of their dues which have spanned the past decade. Further to this, Apple paid back to Italian authorities only €318m to ‘settle’ the dispute, a fee which again does not amount to full payment. Here, there is a fundamental flaw. The point of this repayment should not be to ‘settle’ any arguments. Companies should have to pay back their full debts in order to feel some real pressure and eradicate such fiendish tactics.
One thing is clear. Tax avoidance is eroding our society’s core economic values and our precious rule of law. Hard punishment for culprit companies must become real. In this era of capitalism, which has albeit seen a sparkling global economy, the organisations with a monopoly have an increasingly strong hold over political and economic agenda of our nation. Once one company takes advantage of the system, the rest will follow. The Conservative leadership is evidently failing to attack the underhand game plan of some companies, a government strategy which is punishing the poor and rewarding the deceit of the wealthy.
Without the contributions of organisations at the centre of our society, development of our nationwide economy will become slow and arduous. Multinational companies must give something back in order to support the small businesses which may one day grow to follow in their footsteps.
The European Union’s plans to finitely control tax payments from businesses in the light of these revelations is thus reassuring. Chancellor George Osborne must indeed keep businesses on his side but regulate them strongly, in the same way that the ordinary citizen is kept in line. Britain’s tax body, HMRC, must become more transparent and accountable to the public, making sure that all contribute their fair share.
A market economy like that of the United Kingdom can be hugely successful, but the recent tax scandals have proven that a degree of real state regulation is paramount. Britain’s monetary future must have fairness in its roots, a concept which must further become the spirit of our large businesses.