Tax receipts allow governments to fund public services such as education, policing and transport networks which directly or indirectly benefit individuals and businesses. The fundamental principle underlying the concept of ‘responsible tax’ is that residents of a country (whether individual citizens or corporations) have an obligation to pay taxes in order to support the societal infrastructure that benefits them.

Since 2010, when the campaign group UK Uncut began a series of direct action protests targeting Vodafone and the Arcadia group, public awareness of the issue of corporate taxation has vastly increased. It is increasingly recognised that a company’s approach to tax planning forms a fundamental part of its responsible business practice.

Rathbone Greenbank Investments was therefore delighted to attend a roundtable event on this issue hosted by Christian Aid, where representatives of the investment and NGO communities discussed how investors can encourage companies to adopt fairer, better and more transparent tax payment practices.

Attendees discussed a range of issues including:

- What a framework for responsible tax practices may look like;

- The business case for adopting a responsible tax framework;

- Risks arising form overly aggressive tax planning; and

- Ways in which investors can encourage companies to adopt best practice on tax issues.

For further information on Christian Aid’s tax justice campaign please go to http://www.christianaid.org.uk/resources/policy/tax.aspx 

Kate Elliot