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RESOLVED:
 
Hackney Council
notes that:
 
· 
The pressure on organisations to pay their fair share of tax has
never been stronger.
· 
Polling from the Institute for Business Ethics finds that
“corporate tax avoidance” has, since 2013, been the
clear number one concern of the British public when it comes to
business conduct.
· 
Two thirds of people (64%) believe the Government and local
councils should at least consider a company’s ethics and how
they pay their tax, as well as value for money and quality of
service provided, when awarding contracts to companies.
· 
Around 17.5% of public contracts in the UK have been won by
companies with links to tax havens.
· 
It has been conservatively estimated that losses from multinational
profit-shifting (just one form of tax avoidance) could be costing
the UK some £17bn per annum in lost corporation tax
revenues.
· 
The Fair Tax Mark offers a means for business to demonstrate good
tax conduct, and has been secured by a wide range of businesses
across the UK, including FTSE-listed PLCs, co-operatives, social
enterprises and large private businesses.
· 
Labour and Co-operative MPs and councillors have been at the
forefront of the fight for a fairer tax system, with numerous
Labour London boroughs having signed up.
 
Hackney Council
believes that:
 
· 
Paying tax is often presented as a burden, but it shouldn’t
be.
· 
Tax enables us to provide services from education, health and
social care, to flood defence, roads, policing and defence. It also
helps to counter financial inequalities and rebalance distorted
economies.
· 
As recipients of public funding, local authorities should take the
lead in the promotion of exemplary tax conduct; be that by ensuring
contractors are paying their proper share of tax, or by refusing to
go along with offshore tax dodging when buying land and
property.
· 
Where councils hold substantive stakes in private enterprises,
influence should be wielded to ensure that such businesses are
exemplars of tax transparency and tax avoidance is shunned.
· 
More action is needed, however, as current and proposed new UK
procurement law significantly restricts councils’ ability to
either penalise poor tax conduct (as exclusion grounds are rarely
triggered) or reward good tax conduct, when buying goods or
services.
· 
Hackney Council can and should stand up for responsible tax conduct
- doing what they can within existing frameworks and pledging to do
more given the opportunity, as active supporters of international
tax justice.
· 
Hackney Council’s administration has long been a proponent
for fair taxation and welcomes the Shadow Chancellor’s
statements on fair tax.
 
Hackney Council
resolves to:
 
· 
Reaffirm its commitment to the Councils for Fair Tax Declaration
and enact the Declaration through the points below.
· 
Lead by example and demonstrate good practice in Hackney
Council’s tax conduct, right across our activities.
· 
Reaffirm IR35 is implemented robustly and contract workers pay a
fair share of employment taxes.
· 
Shun use of offshore vehicles for the purchase of land and
property, especially where this leads to reduced payments of stamp
duty.
· 
Undertake due diligence to ensure that not-for-profit structures
are not being used inappropriately by suppliers as an artificial
device to reduce the payment of tax and business rates. 
· 
Demand clarity on the ultimate beneficial ownership of suppliers UK
and overseas and their consolidated profit & loss position,
given lack of clarity could be strong indicators of poor financial
probity and weak financial standing.
· 
Promote Fair Tax Mark certification especially for any business in
which we have a significant stake and where corporation tax is
due.
· 
Support Fair Tax Week events in the borough and celebrate the tax
contribution made by responsible businesses that are proud to
promote responsible tax conduct and pay their fair share of
corporation tax.
· 
Support calls for urgent reform of UK law to enable local
authorities to revise their procurement policies and better
penalise poor tax conduct and reward good tax conduct.
· 
Recognise the principles of Fair Tax in its Sustainable Procurement
Strategy.
 
 
Proposed by: Cllr
Binnie-Lubbock
Seconded by: Cllr Garbett