A LACK of transparency is at the heart of two stories reported by The Herald (“Scots shell firms in £2bn laundering probe” and “Accountants’ host firm in £40m KGB fraud inquiry”, The Herald, September 5).
The Herald deserves credit for continuing to shine a light into the darkest shadows of Scottish Limited Partnerships.
These stories are a reminder of why it is so important for the UK Government to finally live up to the promise made by David Cameron in 2013 to put an end to tax avoidance through tougher transparency rules in the UK and our overseas territories.
Cracking down on those who exploit weaknesses in tax and governance rules requires the complete closure of loopholes which enable wrongdoers to hide money and multinationals to avoid paying their fair share of tax.
With the commendable cross-party support of Scotland’s political leaders, Oxfam and The Herald helped secure a review of Scottish Limited Partnerships at UK level. While they are now required to publish more details about who owns them, these rules must now be closely scrutinised and imposed to ensure there is no misuse of the system.
But beyond this, UK-linked tax havens such as the British Virgin Islands are still failing to publish registers of company ownership and thus still shelter corrupt money and untaxed profits. Through our work, Oxfam knows all too well that tax avoidance – often involving tax havens – robs developing countries of billions of dollars each year. This is money which could pay for life-changing education and life-saving healthcare.
It’s vital the UK Government takes definitive action across these issues, including delivering on its policy to require large companies to publish details of where they pay taxes in all countries of operation.
In the absence of definitive action, the world’s poorest people will continue to pay the price.
Jamie Livingstone,
Head of Oxfam Scotland, 10 Bothwell Street, Glasgow.
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