A business should:
The scoring system underpinning the Fair Tax Mark accreditation standards is predominantly driven by the belief that ‘transparency’ encourages, and helps business demonstrate, responsible tax conduct. The tax contribution made by a business over a number of years is also considered (with feedback from civil society strongly supporting inclusion of this additional element). However, there are many good reasons why a business may not be paying high tax rates over a given period – for example, it may be loss-making in some years, or legitimate tax reliefs are being claimed within both the spirit and letter of the law. Such businesses can still secure a Fair Tax Mark, but additional disclosures will be needed – especially in connection with shortfalls from the applicable headline rates of tax in operation.
Currently, we have three standards available:
Global Multinational business
Initially, Fair Tax Mark accreditation was available only to businesses headquartered in the UK, but this was extended internationally to multinational enterprises on 25th November 2021, with the launch of the ‘Global Multinational Business Standard’. We also offer a Spanish language version of the standard.
Consultation
The Fair Tax Mark Standards and criteria have been developed with input from a broad range of stakeholders, including businesses, civil society organisations, tax experts and more.
A Technical Advisory Group communicates throughout the year and meets as and when needed. The Group are drawn from a range of backgrounds and perspectives.
A public consultation process underpinned the development of our Global Multinational Business Standard.
There are a thousand and one issues out there that business is being asked to champion – on top of the day-to-day challenge of thriving commercially in an ever more competitive world. Approaches and acronyms abound, be it ESG or CSR or SRI or SDGs, with each urging that a business prioritise their favoured issues.
So, why should a business prioritise responsible tax conduct and tax transparency, and pursue Fair Tax Mark accreditation?
The terrible Russian invasion of Ukraine laid bare the extent of the UK’s exposure to illicit finance, prompting concerted counter efforts by parliamentarians. This week, a welcome second Economic Crime Bill edges closer to being finalised, but substantial loopholes are in danger of being left unaddressed unless amendments – backed by leading anti-corruption and tax justice groups – are accepted.
The advance of tax transparency was never going to be quick and smooth. But it is slowly but surely grinding forward, with increasing legal requirements emerging across many parts of the globe. At the Fair Tax Foundation, we believe that comprehensively implemented public Country-by-Country Reporting (pCbCR) significantly enhances the ability of stakeholders across the world to form an informed opinion as to whether a business is paying the right amount of tax, in the right place and at the right time.
