As the months rolled by the revelations
tumbled in: Starbucks, Amazon, Google UK, Facebook. Some of the largest and most
powerful companies in the world had avoided, through cloudily legitimate means,
paying significant chunks of their UK corporation tax – collectively contributing only £30m over four years despite profits of £3.1bn in Britain.
I’ll admit straight away that my
understanding of the processes used to avoid tax is hazy. I don’t feel I can talk with authority on the financial ins and outs. However, despite my economic
ignorance, what I do feel licensed to discuss is the ethical quagmire this
leaves me, as a consumer, facing.
It’s not a new problem. I took the decision
to stop buying clothes in Topshop after finding out about the now infamous £1.2bn
cheque Philip Green (CEO of Arcadia Group) gave to his Monaco-based wife in
2005. There is no income tax in Monaco; meaning Green avoided paying an
estimated £285m to the British government – a figure that could hypothetically
fund 20,000 NHS nurses’ wages. To me that single statistic sums up the
immorality of that action. The concept of one individual owning that much
wealth, more wealth than can ever be spent, seems deeply wrong. This is a man
who thinks nothing of throwing a £6 million birthday celebration (for himself)
or buying a £32 million yacht. A few less millions wouldn’t have dented either
Philip Green’s wallet or his lifestyle.
Of course, I’m opening myself up here to accusations
of naivety, idealism or a failure to understand the way that the world is. I’m
fully aware that there will always be a scale of wealth in which some are
richer than others. I have no problem with that, or with the entrepreneurial
concept of starting a business, building it up and earning a fantastic wage
from it. What I cannot stand though is the unwillingness of certain companies
and individuals to pay a sum to the country they are living or trading in, so
that those who are not as well off as themselves can be supported. With
privilege should come awareness and acknowledgment of being fortunate in
comparison to others. Avoiding tax is a demonstration of selfishness, of
retreating inwards and not giving a damn about others. Taxes are used for
public good and public necessities. For example, mundane as it is, the upkeep of roads is only made
possible through taxes. Many companies whose branded vans are seen throughout
the country could not trade without these roads. But they still feed,
vampire-like, off infrastructures they do not help to support.
Also, in the UK taxes fund healthcare,
education, the police and other public services. Call me a liberal lefty, but
to me these are the cornerstones of society – public goods that are absolutely
vital. But in the UK we are now living in a time where libraries are being
closed, where the budget for the NHS has been reduced, where cuts are slicing
into the most vulnerable first. And yet some global companies continue to duck
and dive around the taxman – legally, but not morally, in the clear.
To return to my own personal conundrum
though, the query is this: are my values strong enough for me to resist
shopping in and thus supporting these businesses? To not buy books online? To
throw away the Mac I am typing on? There are also other issues aside from
finance, such as Amazon’s throttling of independent bookshops or Apple’s
appalling working conditions on construction lines. Despite being aware of all
of this though, my response as a consumer is tricky. In an ideal world I would
only support ethical businesses, but living rurally and having a minimal budget
means that the ease of online ordering is seductive – particularly for second hand items on eBay (who
paid just £1.2m on £800m of sales in 2010.) Also, it vastly reduces the number
of products that can be bought.
As mentioned before though, I don’t give my
money to Topshop (or any other member of the Arcadia group), but this is easy
as my main hunting ground for clothes are charity shops, vintage and independent businesses and markets. I’m
using Topshop as an example because my blog is primarily known for its fashion
content. I know that to speak against a brand with such huge sway in the industry
is not the done thing, but I'm not
judging anyone who buys or enjoys their clothes – I'm only expressing
my personal opinion. I can also appreciate the support that Topshop has extended to new
designers through NewGen, particularly in a time when corporate funding is one
of the only ways fledgling brands can fly. But this good work doesn’t negate or
blank out the fact that Philip Green, despite huge earnings, avoided paying the
fully taxable amount. It was money sorely missed, now desperately needed. With these companies it's not a few thousand lost here and there, but massive
sums – bigger than most of us could comprehend owning – that should be invested
in the country, not sitting in some business bank account.
I don’t know where this leaves me. Writing
this piece won’t convince any business to pay their tax or any government
minister to shut the loopholes that allow this to happen. But it feels
important to state, even if I know that as an individual my power only extends
to what I buy.
Statistics and facts taken from The
Guardian, The Telegraph and UK Uncut.
Now
how to explain the so-tenuous- it’s-almost-invisible link between the photos
and the subject matter of the post? Two reasons. Firstly, the fifties swimsuit
is handmade – no high street brand has brushed its hands across the ruched
elastic. But secondly, and this is meant fully tongue in cheek, it’s a well
known advertising cliché that adding a female in a swimsuit supposedly sells
a product. Nothing for sale here though, just images of a summer May afternoon, 'swimming' in a field crop of flowers - photos taken by the fantastic Flo.















