Help us end the global race to the bottom on corporate tax

Businesses demonstrating responsible tax practices should be recognised and celebrated, and any global race to the bottom on corporate income tax resisted.

The challenge we face is enormous, but so is the potential for change. Across the globe, 36% of multinational profits (US$1trn) are artificially shifted to tax havens each year, leading to a US$226bn reduction in corporate tax revenue. The developing world is particularly vulnerable to such tax dodging. The UK alone is suffering from a staggering £71bn of profit shifting, leading to an estimated £14bn annual reduction in corporate tax revenues.

Our progressive corporate community began in the UK and has grown to embrace businesses headquartered in Denmark, Germany, Finland, Italy, Spain, Sweden and the Netherlands.

Fair Tax Mark certification has now been secured by 275 businesses, which together employ more than 450,000 people and contribute a massive £5.3bn / €6.1bn annually in corporate tax worldwide.

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Change is possible

We believe the more businesses that stand up for responsible tax conduct, the more likely legislators are to create better laws, and the more likely regulators are to implement those laws robustly.

Since the founding of the Fair Tax Foundation:

• Innovations pioneered by Fair Tax Mark certified business have entered into law. Across the European Union and in Australia, the need for the financial statements of large multinationals to report income, profits and taxes on a country-by-country basis has now been mandated. In the UK, companies of all sizes are now required to disclose their beneficial owners, and even the smallest will soon need to disclosure details of their income statement and tax paid.
• There has been a shift in mainstream political thinking in the UK, with the previous drive to have one of the lowest rates of corporation tax among major economies replaced by a welcome increase in the headline rate from 19% to 25% in 2023. The UK now has a higher rate of corporation tax than any Scandinavian country. In a little over a decade, corporate income tax contributions have risen from £42bn to £101bn per year, with the closure of a portion of tax avoidance loopholes a major contributing factor.**
• Countries across the world are coming on board to the idea of a global minimum tax for business, which will spell the end of many 0% tax havens, with plans already well advanced across the EU, the UK, Japan and South Korea.
• A small, but increasing number of investors are waking up to the fact that companies’ ‘tax conduct’ should guide their investments, with the likes of Nest – the UK’s auto enrolment pension scheme – even advocating for investees to pursue Fair Tax Mark certification. The Dutch Association of Investors for Sustainable Development recently adopted our KPIs of responsible corporate tax conduct – and their green and red flags.

Responsible businesses are proud to pay their fair share of tax and care about what they receive in return. Fair Tax Mark businesses are showing what is possible, leading the way and helping end the global race to the bottom on tax.

Please donate now to support us in this mission.

* Source: Atlas of the Offshore World, November 2024

** Source: Office for Budget Responsibility Years 2013/14 to 2025/26. Onshore and offshore corporation tax combined.