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Chancellor is right on morality and tax - but he has failed to act accordingly

March 21 2012 - Christian Aid warmly welcomes the Chancellor’s recognition of the ‘moral repugnance’ of tax evasion and aggressive tax avoidance – but says he has failed to act accordingly.

‘George Osborne is absolutely right to call tax evasion and aggressive tax avoidance morally repugnant, because they often involve people and companies refusing to contribute their fair share to the rest of society, including the poorest people,’ said Sol Oyuela, Christian Aid’s Senior Political Adviser.

‘The introduction of a General Anti-Avoidance Rule on tax is also in principle welcome, recognising as it does that taxpayers should follow the spirit as well as the letter of the law.

‘What is disappointing is that Mr Osborne has not followed through on the logic of his position and tackled the root causes of tax evasion and aggressive avoidance.

‘His tax deal with Switzerland colludes with Swiss financial secrecy, which supports tax evasion, corruption and money laundering across the world, devastating domestic revenues in the poorest countries.

‘Repeatedly in this Budget, the Chancellor has sought to plug holes where revenue is lost to tax dodging. But this piecemeal approach fails to tackle the root cause of the problem – financial secrecy.

‘Tax dodging is an even greater challenge for poor countries, which lack the UK’s ability to throw hundreds of highly-trained tax collectors against the problem of aggressive tax avoidance and evasion.

‘However the solution is the same for all countries, rich and poor: fight the financial secrecy which currently makes it so easy for companies and individuals to cheat their societies of what they owe.

‘There is much that Mr Osborne could do on this front, starting with the scrapping of his reprehensible deal with the Swiss.

‘UK leadership at the G20 in support of ambitious measures to enhance the transparency of multinationals is another crucial part of the solution.’

The Chancellor indicated that the basis for the new general anti-avoidance regulations would be the recent report by Graham Aaronson QC. The report, however, is aimed only at the worst tax avoidance schemes - not the forms of tax avoidance used by some unscrupulous multinational companies that cost developing countries billions in lost tax revenues every year.

For more information and interviews, please contact Rachel Baird on 0207 523 2446 or rbaird@christian-aid.org

Notes to Editors:

1. Christian Aid works in some of the world's poorest communities in nearly 50 countries. We act where the need is greatest, regardless of religion, helping people build the lives they deserve.

2. Christian Aid has a vision, an end to global poverty, and we believe that vision can become a reality. Our report, Poverty Over, explains what we believe needs to be done – and can be done – to end poverty.  Details at http://www.christianaid.org.uk/Images/poverty-over-report.pdf

3. Christian Aid is a member of the ACT Alliance, a global coalition of 100 churches and church-related organisations that work together inhumanitarian assistance and development.  Further details at http://www.actalliance.org

4. Follow Christian Aid's newswire on Twitter: http://twitter.com/caid_newswire

5. For more information about the work of Christian Aid visit www.christianaid.org.uk