Fair Tax Mark

The Fair Tax Mark is an independent accreditation awarded after an assessment based on "Transparency [and] tax rate, disclosure and avoidance"...^[1] As of January 2016, it is applicable to UK businesses.^[2][3] The process of assessing a company for the mark is intended to be initiated by the company that wants the mark.

The mark is awarded by the company Fair Tax Mark Limited, an industrial and provident society incorporated 18 February 2014, company number IP032308.^[4] The Tax Justice Network assisted in raising initial funding, and it is supported by a number of other organisations^[5] including the Public and Commercial Services Union.^[6] Before the present company was formed an "earlier incarnation" undertook a pilot study in June 2013.^[7]

The company refers to itself as a non-profit community benefit society and say that they "are a hybrid organisation that raises money through commercial activities (licensing the mark) but also raises money through grant fundraising and individual donations.".^[5]

Tax policy

In their directors' report in their financial statements for the period ending 31 December 2014, Fair Tax Mark Limited committed themselves to paying taxes "in accordance with the spirit of all tax laws" and not to use options, allowances, or reliefs, or undertake specific transactions, "that are contrary to the spirit of the law".^[8]

Reception

In an article dated 20 February 2014, The Guardian highlighted "...the problem of corporate tax avoidance..." and stated "The Fair Tax Mark will use a set of metrics to assess companies on their tax and transparency." but also discussed problems and issues with this approach^[9]

Also on 20 February 2014, Ben Chu, the Economics Editor of The Independent, gave the opinion that the "Fair Tax Mark is pro-market".^[10]

Also on 20 February 2014, Mike Truman, on Taxation magazine's website, stated that the new version of the mark being launched meets many of the criticisms made of the previous version, much of the criticisms and changes being related to methodology.

On 26 February 2014, Salman Shaheen, in an article on the International Tax Review website, expressed the opinion that the mark provided companies an opportunity to provide "a good tax story" about themselves.^[11]

On 29 January 2015, an article in The Times by its Financial Editor, Patrick Hosking, noted that "a tiny heart-shaped squiggle [the Fair Tax Mark logo]... is starting to appear in the advertising of British blue chips."^[12]

In an article dated 2 February 2015, The Financial Times stated "The Fair Tax Mark is part of a trend for more tax transparency." but also stated "Some critics view the Fair Tax Mark as a public relations gimmick with inadequate governance and accountability.".^[13]

On 18 January 2016, an article by Anca Voinea, on the Co-operative News website announced that "The European Parliament has voted in favour of a “Fair Tax Payer” label across the EU to tackle tax avoidance." and that "MEPs had been lobbied ahead of the parliamentary vote by the Fair Tax Mark...".^[14]

Awardees

As of 24 September 2016, 21 companies had been awarded the mark, including SSE plc,^[15] the first FTSE100 company to achieve the mark.^[16] Other notable awardees include Go Ahead Group (FTSE 250), Lush Cosmetics and The Co-operative Group.^[17] The target is for at least 350 companies to be awarded Fair Tax Marks in the first 3 years to 28 April 2017.^[18]

References