Author Archives: Tom Morrison

 “This agreement is a further step towards more openness and better cooperation, facilitating fairer and more effective taxation throughout the EU.” 

With those words, Pierre Moscovici, the commissioner responsible for financial affairs and taxation declared Europe as a ‘hallmark’ of financial transparency and openness. 

Last March, the member states of the EU reached an agreement to create a more transparent environment for tax advisers, accountants and other financial workers and services. Amongst a context that saw leaks from the Panama papers, this agreement set a standard in how financial corruption and tax avoidance would be tackled, shining a light on those that attempted to subvert their financial responsibilities. The process would be up and running in 2020, with information being exchanged between member states from October that year.

It is imperative that the United Kingdom does not renege on this responsibility, regardless of what happens post-March 2019. 

Corporation tax is a necessary evil. Whilst the drive for economic growth and profit has seen companies flourish, innovate and create jobs – those same companies are built on the foundations laid by our society. 

Our schools train the workers of the future, our infrastructure allows for the smooth movement and running of day-today business activities, and our emergency services protect property and keeps workforces in good health. All of these things cost money and taxation is a fair way to pay for these ‘hidden’ expenses. 

To avoid paying what is right is nothing short of theft. The EU’s transparency directive was a logical way of ensuring that there would be no hiding place for individuals or organisations not paying their fair share.

Therefore, the Liberal Democrats need to ensure that there are plans in place to ensure that these directives are not lost, regardless of what happens with Brexit.

Let’s put this in perspective: The UK has the largest number of offshore entities in Europe with around 18,000. The second largest is Luxembourg with nearly 11,000. With the UK economy predicted to fall next year – imagine the financial support available if some of these organisations paid what was fair?