Hexham challenges tax havens
Challenging tax havens must be a priority, says John Christensen
Challenging tax havens must be a priority for people campaigning for economic justice. That was the message from John Christensen of the Tax Justice Network, who gave the opening talk at the latest Hexham Debate.
The Hexham Debates are a series of topical discussions organised by Hexham Quaker Meeting and Northumbrians for Peace. Around 200 people attended the last debate on 24 March.
John Christensen estimated that legal tax avoidance costs the UK £25bn per year, with a further £70bn lost to illegal tax evasion and £28bn in uncollected taxes. He contrasted the £123bn worth of lost taxes with the relatively minimal £1.5bn that he said is lost to benefit fraud. He said that tax havens contribute heavily to the poverty of many African nations.
‘I never knew I could be riveted by a talk on taxation,’ said local Friend Jenny Cozens, who described the event as a ‘jaw-dropping, often horrifying trip around the hidden finances of the world’.
The chancellor, George Osborne said on Monday, 9 April, that he was ‘shocked’ at the level of wealthy people’s tax avoidance.
‘It’s encouraging that he’s finally acknowledging what we’ve been saying for some time,’ said Liam Purcell of Church Action on Poverty. ‘Now we need to see him actually doing something about it.’
He said that the chancellor had ‘really missed an opportunity’ by not introducing a firm ‘general anti-avoidance rule’ in last month’s budget. Such a rule would allow the authorities to set aside any scheme that was designed primarily for tax avoidance.
