Tax can be a complicated business, but there are some simple solutions which would help achieve tax justice.

1. Companies take responsibility

Tax dodging robs poor countries of much need revenue.  All companies should pay their taxes in the countries in which they do business.

Multinational companies should:

• Stop using tax havens to siphon profits out of developing countries.
• Make tackling tax avoidance top priority in their corporate social responsibility programme
• Stop the secrecy – make their affairs more transparent by publishing a basic set of accounts in every country they work in – including tax havens.
  
  

2. International Cooperation

More must be done to help developing countries keep hold of the tax revenues that are rightfully theirs.  

Governments can:

• Strengthen tax law and increase tax collecting capacity in poor countries
• Make companies publish a basic set of accounts in every country they operate
• Not sign tax deals which result in poor countries losing out
• Do more in rich countries to make tax avoidance in poor countries less worthwhile.

Internationally institutions must ensure:

• The G20 and EU work together to increase pressure on tax havens
• The United Nations Committee of Tax Experts should be given the power to resolve international tax issues for the good of all countries.

3. Transparency

People can’t always see what companies are up to when they move their profits around.

Country-by-country reporting would help fix this. 

At the moment, companies only present one set of accounts showing their overall financial activities and results.  We want companies to publish a basic set of accounts showing what they’ve been up to in EVERY country they work in – especially the tax havens.

4. Stronger tax authorities

Well spent aid can help develop tax authorities and help countries end their aid dependency.

In 1998 with £20 million of aid from the UK government, The Rwandan Revenue Authority was established.  Rwanda now collects that amount every four weeks.

Developing countries must stand up to multinationals and not give away their right to tax royalties, management fees and other foreign payments at source.

5. Robin Hood Tax

A tiny tax on major financial transactions by banks and other big financial institutions like hedge funds would raise billions to provide vital extra money for poor people around the world.

The Robin Hood tax would raise around 400 billion dollars a year, mainly from the richest institutions and people in the world.