Financial Transparency Coalition

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GLASGOW, SCOTLAND—Christian Aid Scotland and the Church of Scotland today launch a joint report to raise awareness of the billions lost to developing countries from tax evasion and avoidance and to call on the International Accounting Standards Board to introduce an international country-by-country reporting standard.

Such a standard would oblige multinational corporations to report on their profits and other financial details in each of the countries or jurisdictions in which they operate.

The launch of Paying our dues: how tax dodging punishes the poor (PDF, 5mb), and practical resources for churches and presbyteries is the direct result of deliverances agreed by the Church and Society Council at the General Assembly of 2010. These support Christian Aid’s view that that companies should be transparent and accountable for the tax they pay, in all the countries in which they operate.

International organisations such as the OECD recognise that tax dodging is likely to cost developing countries more than the total that they receive in aid in each year. Christian Aid estimates that their annual loss may be as great as $160 billion.

The latest statement from the UN on the Millennium Development Goals also addressed the issue of tax. At their meeting in New York last month, leaders recognised the need to combat tax evasion and to curtail illicit financial flows at all levels.

Kathy Galloway, head of Christian Aid Scotland said:

‘Christian Aid is delighted to have the support of the Church of Scotland as we highlight the devastating impact that tax dodging has on the global economy. Especially in poor countries where the tax base is very small and millions live on subsistence incomes, it is shameful that companies which make large profits from the resources of these countries should be dodging fair taxes.’

The Moderator of the General Assembly of the Church of Scotland, the Rt Rev John Christie, said:

‘The Letter of James challenges us to work against injustice and speak on behalf of the vulnerable, the poorest and the marginalised. I am commending Paying Our Dues to all members and ministers of the Church of Scotland; it sets the context, both in terms of practical economics as well as the theological underpinning for how we as Christians might approach these issues.’

The campaign includes a request for supporters to contact four FTSE 100 companies -Vodafone, Unilever, TUI Travel and Intercontinental Hotel Group to ask them to lead from the inside, and raise the call for new global accounting rules that require firms to report the profits made and taxes paid in every country they operate in.

Many Church of Scotland members and supporters will join Christian Aid’s supporter day, including a lobby of the UK Parliament, in Westminster on Wednesday 20 October 2010.

If you would like further information please contact Claire Aston at Christian Aid on 0131 240 1523 / 07961 303481 or Nick Jury at the Church of Scotland on 0131 240 2268.

The full report can be downloaded here.