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Article

11 Jul 2011

Author:
ActionAid

Tax avoidance ‘as big an issue as sweatshops’ says ActionAid

Businesses face the risk of seriously damaging their reputation if they do not make tax planning part of their corporate responsibility programmes, says anti-poverty charity ActionAid...[A]longside other campaign groups ActionAid will launch a report on how companies can proactively commit to 'Tax Responsibility’...Martin Hearson [ActionAid’s tax policy advisor] said: "So far businesses have reacted to criticism of their tax avoidance by denying any responsibility. This is exactly how the fashion industry reacted when claims of ‘sweatshop’ abuses emerged in the 1990s. Just as fashion companies who failed to take these allegations seriously incurred major reputation damage, so businesses accused of tax avoidance need to respond with more than reflex denials."