SCIAF asks Alexander to back fairer corporate tax laws

SCIAF has written to the UK Treasury Secretary Danny Alexander calling on the UK Government to press its European partners to introduce new corporate tax laws to help developing countries.

Companies currently extracting oil, gas and other resources do not have to declare what taxes they are paying overseas and many are able to force desperately poor nations into agreeing bad deals.

In Zambia, a country in which two-thirds of the population lives in poverty and life expectancy is 47 years, 70 per cent of its exports come from copper mining but this generates just 10 per cent of its national income.

In the letter, posted to Mr Alexander this week, it stated:

“SCIAF believes that corporations should pay their fair share to the people whose natural resources they profit from, not just in Zambia but wherever UK companies are operating overseas. Copper makes up over 70% of exports from Zambia, yet only 10% of taxes. A shift in international financial reporting legislation could make a huge difference in ensuring that revenue from natural resources goes back into development.

“In recent months, thousands of SCIAF supporters across Scotland have signed campaign postcards and emails, calling on the UK Government to push for Country by Country Reporting legislation from the EU. This campaign, in association with the global Publish What You Pay coalition, calls on the EU to legislate for European-based oil, mining and gas companies to report on what they are paying for access to countries’ natural resources.”

The European Parliament endorsed a report in September, calling on the European Commission to “establish legally binding requirements for extractive companies to publish their revenue payments for each project and country they invest in.”

The letter to the Treasury Secretary continued:

“We urge you to push for this legislation to be put in place. With a billion people going hungry around the world, accountability and transparency from our oil, mining and gas companies could ensure that people and the planet can benefit from the responsible and just management of natural resources.”

SCIAF has asked for an opportunity to meet with Mr Alexander and present him with over 2,500 campaign postcards signed by people across Scotland in support of the campaign. This week the Scotsman published an open letter by Patrick Grady, Advocacy Manager at SCIAF, calling for the G20 Finance Ministers' meeting to make the right decisions around fairer corporate tax laws.

SCIAF

Scottish Catholic International Aid Fund

SCIAF asks Alexander to back fairer corporate tax laws