New Report shows companies involved in providing public services linked to tax havens

More than half of the private companies winning Government contracts have subsidiaries in tax havens – including the company employed by DVLA to crack down on vehicle tax evasion

Out of the 20 biggest companies being awarded public service contracts, 13 have subsidiaries in places usually used to minimise tax bills, according to a report by Ethical Consumer magazine published this week (1).

The report identifies that companies including Capita, KPMG and Serco have subsidiaries in places usually used to minimise tax bills.

Ironically earlier this year Capita was awarded a £100 million contract by the DVLA to crack down on vehicle tax and insurance evasion.

Tim Hunt, the report’s co-author, said, “At a time when the Government is implementing the biggest cuts to public spending in living memory, the Government should demand that companies being awarded contracts should not be allowed to also make use of tax havens.”

Richard Murphy, from the Tax Justice Network, said, “These findings are troubling, but seem to form part of a pattern that now appears deliberate.

“We’re seeing taxpayers’ money now being captured by private corporations who are using it for the benefit of a few in society at a cost to the great many ordinary people who’re paying the price through reduced services, benefits and even healthcare, and all at the cost of increased tax.”

Keith M Ross of Swansea Green Party added,  “Dealing with tax evasion and avoidance in the UK could, on its own, recoup enough money to pay off the public finance deficit.

“It is completely unacceptable that the Government is paying no regard to the social and environmental records of the companies who are being awarded contracts to run our public services, and it completely undermines their rhetoric about aspiring to be the greenest Government.”

The report surveyed 20 of the biggest companies being awarded Government contracts. The list of companies surveyed was compiled from information provided by the union Unison and the Cabinet Office.



(2)    Ethical Consumer Report, ‘Is that what you call a good Service?’:



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