Ei-iE

The EI Research Institute has launched its latest study, in collaboration with the Council of Global Unions (CGU), on Global Corporate Taxation and Resources for Quality Public Services in London, United Kingdom (UK).

EI members of the UK Trades Union Council (TUC), the National Union of Teachers (NUT), the National Union of Teachers (NUT), the National Association of Schoolmasters/Union of Women Teachers (NASWUT), the University and College Union (UCU), and the Educational Institute of Scotland (EIS) were also represented. They joined EI President, Susan Hopgood, and EI Deputy General Secretary, David Edwards, to the event held on 28 November in the TUC building.

David Edwards welcomed participants to the launch, and introduced key speakers.

Susan Hopgood emphasized that “in the context of current economic crisis, unions have been asked to accept severe cutbacks and austerity measures on the basis that there is no money available.”

She continued: “The money is there! As this report demonstrates, it is not collected through taxation because multinational companies use their global reach and legal loopholes to avoid fair fiscal obligations. Trillions of USD, Pounds and Euros are lost annually to societies through corporate tax avoidance and evasion – enough to provide the resource needs of the UN Millennium Development Goals (MDGs) and the budget requirements for social services in industrialized countries.”

Hopgood went on to say: “We call on Global corporations to look not to the short term, but to their long term interests in contributing to sustainable communities with quality public services. Governments collectively should reach a common pact on tackling global corporation tax avoidance. Corporations must also work with organizations like ours, and with civil society, to become responsible economic actors, helping to build a better world.”

EI Research Coordinator, Guntars Catlaks, also underlined that this report brings together the evidence on the resources lost to communities through tax avoidance, the ways in which global corporations avoid taxes and also presents some of possible solutions.

One of such possible solutions is a system of “formulary apportionment”, i.e. global corporations paying taxes apportioned to each of the countries in which they operate, according to an internationally agreed formula.

This system is already successfully used in Canada, Germany and the U.S.A., and it is currently being considered by the European Union. Ultimately, it could be in the interest of global corporations: it would bring simplicity and clarity, enabling them to shift their focus from various methods of tax avoidance to fulfilling a key role in contributing to the world economy.

Senior Consultant to EI General Secretary, John Bangs, added that the Organisation for Economic Co-operation and Development (OECD) has an economic department open to discussion with NGOs, and with which tighter links can be created.

EI UK affiliates’ representatives further took the floor.

NUT General Secretary, Christine Blower, declared: “We are alert nationally and in EI. We fight for quality public education, and need proper provision and support as we are confronted with a government keen on privatisation.” She added “though the report focuses on corporations avoiding taxes, we also regret that on an individual level, the majority of UK citizens are against a Tobin Tax. We need to educate them about the benefits of a global financial transaction tax.”

NASUWT National Official Education, Darren Northcott, called for action: “There would be no crisis if corporations would contribute fairly to public services via taxation. It is all about contribution by corporations, but also rethinking the global economy, and managing the risks. Unions have a role to play in ensuring a responsible approach to taxation, to fight economic and ecological crises.”

UCU Senior National Official, and EI European Region (ETUCE) Vice-President,Paul Bennett, later stressed: “The report calls for a paradigm shift. Ordinary individuals and national companies are drivers for initiatives. Our new allies are the small, national companies, disadvantaged if compared to multinationals. In terms of economic successes and growth, governments must also build on long-term, not short-term, views on education.”

EIS General Secretary, and EI European Region (ETUCE) President, Ronnie Smith, pointed out: “There should be a balance between spending and cuts. We cannot tolerate any longer that there is laissez-faire for corporations in terms of taxation, and a different, aggressive approach for teachers in terms of pension and work conditions.”

To read the full study, please click here.