Capita is the 8th FTSE listed business to become a Fair Tax Mark accredited organisation
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Capita has secured Fair Tax Mark certification and joins the growing movement of responsible businesses who are proud to say what they pay with pride.
The Fair Tax Mark is an independent certification scheme, which recognises organisations that demonstrate they are paying the right amount of corporation tax in the right place, at the right time. In total, more than 50 businesses have now been certified. These include national brands such as Timpson, Lush, and Richer Sounds, FTSE listed companies including SSE and Marshalls Plc., as well as co-operatives, family businesses and social enterprises.
As part of the accreditation process, Capita has chosen to publish their first Responsible Taxation report, which sets out plainly what tax they pay and why, both in the UK and abroad. This also describes how Capita is seeking to remove complexity from its corporate structure, including details around closures of subsidiaries in the UK, Jersey, Luxembourg and the UAE. A commitment has also been made to publish additional country-by-country reporting during 2020, after publication of the Annual Reports and Accounts.
Paul Monaghan, Chief Executive, Fair Tax Mark, said: “We are delighted to announce that Capita is the first major business in the consulting and services sector to achieve the Fair Tax Mark, and is demonstrating a deep commitment to leading edge responsible tax conduct. They have updated their tax policies and reporting, and are simplifying their corporate structure in a progressive manner. It’s great to see Capita ‘say what they pay with pride’, and for this to sit alongside other recent commitments to pay the real living wage and appoint employees to the board.
“The public rightly expects responsible behavior but far too often they’re reading headlines that describe the tactics businesses employ to avoid contributing the tax they should to the public purse.
“It is estimated that annually, due to corporate profits being shifted to tax havens, corporate tax revenue losses in the UK amount to at least £7bn. Just think of the nurses, doctors and teachers we could employ, or the renewable energy infrastructure we could build if that tax was paid as it should be?”
“I’m proud that Capita has joined the Fair Tax Movement. This demonstrates our genuine commitment to responsible behaviour, including being transparent in our reporting and clear about the tax we pay. Achieving the Fair Tax Mark accreditation recognises the important steps we have made to being a progressive, purpose-led, responsible business as part of our multi-year transformation.” Jon Lewis, Chief Executive at Capita plc.
Polling data from ICMi showed record levels of concern among the public about the use of tax avoidance practices by business in the UK. Over three quarters of people responded that they would rather shop with (77%) or work for (78%) a business that can prove it is paying its fair share of tax – in both cases, up eight percentage points on 2018.
An increasing number also said that it was important to celebrate businesses who can demonstrate good tax conduct and shun the artificial use of tax havens and contrived tax avoidance practices, up six percentage points on 2018, to 75%.
Paul Monaghan added: “Paying the right amount of tax is about fairness. We’re pleased to see that there’s a growing movement of responsible businesses that are stepping up and voluntarily demonstrating a responsible approach to tax.”