Category Archives: Corporate Governance

Europe’s top 25 banks failing on green pledges, campaigners warn

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ShareAction says lack of plans to tackle climate crisis and biodiversity loss casts doubts on banking’s sustainability pledges

Europe’s 25 largest banks are still failing to present comprehensive plans that address both the climate crisis and biodiversity loss, putting their sustainability pledges in doubt, campaigners have warned.

While some lenders such as NatWest are demonstrating leadership on specific issues – such as net zero targets and policies restricting financing for new fossil fuel – research by investment campaign group ShareAction found none of the banks it reviewed were taking action across all key areas.

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European banks storing €20bn a year in tax havens

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Barclays and HSBC among banks booking money equivalent to 14% of annual profits in offshore entities

Leading European banks are booking around €20bn (£17bn) a year – equivalent to 14% of their total profits – in tax havens, with Barclays, HSBC and NatWest Group among those enjoying the lowest tax rates, according to a new report.

The figures emerge from an analysis, conducted by the EU Tax Observatory, of 36 big banks required to publicly report country-by-country data on their activities.

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‘The Queen’s bank’ Coutts joins the ranks of ethical brands

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Despite chequered history the 329-year-old private bank has secured the sought-after B Corp status

Private bank Coutts will offer carbon credits and green mortgages to its ultra-wealthy clients after becoming one of the largest UK banking brands to secure B Corp status.

Coutts, known as the Queen’s bank for having served every member of the royal family since George IV, is trying to bolster its environmental and social reputation after being dogged by a series of scandals in recent years, including sexual harassment allegations against its former star banker Harry Keogh, who was sacked in 2018. The bank was also fined by Swiss regulators in 2017 over alleged money laundering and for illegally profiting from transactions associated with the 1MDB scandal.

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G20 backs crackdown on multinationals’ use of tax havens

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Finance chiefs endorse landmark move to prevent profits being shifted to low-tax countries

Finance chiefs of the G20 economies have endorsed a landmark move to stop multinationals shifting profits to tax havens and will also warn that Covid variants threaten the global economic recovery.

At talks on Saturday, they also acknowledged the need to ensure fair access to vaccines in poorer countries. But a draft communique to be rubber-stamped at the meeting in Venice did not contain specific proposals on how to achieve that.

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G7 plan ‘will slash UK tax revenue from US tech firms’ say experts

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Global tax changes could mean Treasury loses £230m digital services tax receipts from Google, Amazon, Facebook and eBay

Experts have warned that US tech companies, including Google, Amazon and Facebook, could pay less tax in the UK and several other big economies under global reforms agreed at the weekend by the G7.

In a key stumbling block emerging days after the landmark deal, research from the TaxWatch campaign group indicates that the UK Treasury stands to lose about £230m from the taxes paid each year by four of the big US tech firms.

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‘Historic agreement’: Rishi Sunak announces G7 deal on tax reform – video

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Finance ministers from the world’s richest economies have agreed a deal to tackle tax abuses by some of the world’s biggest multinationals and establish a minimum global corporation tax for the first time. Announcing the deal, the UK chancellor, Rishi Sunak, said it would create ‘a fairer tax system fit for the 21st century’

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Rishi Sunak announces ‘historic agreement’ by G7 on tax reform

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Finance ministers agree deal to force multinationals to pay tax in all countries where they operate

The G7 group of wealthy nations have signed a landmark deal to tackle tax abuses by some of the world’s biggest multinationals and establish a minimum global corporation tax for the first time.

Finance ministers from the group agreed the plan on Saturday as part of talks held in London, the chancellor, Rishi Sunak, said.

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G7 aims to reach historic deal on corporate tax abuse this weekend

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Talks hosted by Rishi Sunak believed to be very close to agreement in principle on global reforms

The G7 group of wealthy nations is close to a historic agreement to radically reshape international tax rules by using a global minimum rate of corporation tax to prevent abuse of the system by multinationals.

Finance ministers from the world’s biggest western economies were negotiating details late on Friday with the aim of reaching a landmark deal early on Saturday as part of talks being held in London.

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European finance ministers say deal to stop global tax abuse is ‘within reach’

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France, Germany, Italy and Spain increase pressure for an end to loopholes that enable multinationals to pay minimal tax

The EU’s four biggest economies have raised the pressure for a landmark agreement to curb tax abuse by multinational companies to be reached at G7 meetings in London on Friday.

Sending a united message in a letter in the Guardian, the finance ministers of France, Germany, Italy and Spain said a critical moment had been reached to strike a blow against tax avoidance as governments around the world attempt to rebuild from the Covid-19 pandemic.

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Cyprus could block EU adoption of minimum corporate tax plan

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EU directive on Joe Biden’s proposal for 15% tax rate on multinationals would require unanimous support

Cyprus could veto the EU’s adoption of Joe Biden’s proposal of a global minimum corporate tax rate, the country’s finance minister has suggested.

A White House proposal of a 15% tax rate for multinationals applied to profits in all jurisdictions is expected to be endorsed in principle by finance ministers of the world’s seven largest economies, the G7, at an upcoming meeting in Cornwall.

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Microsoft Irish subsidiary paid zero corporate tax on £220bn profit last year

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Microsoft Round Island One is ‘tax resident’ in Bermuda, with no employees except directors

An Irish subsidiary of Microsoft made a profit of $315bn (£222bn) last year but paid no corporation tax, as it is “resident” for tax purposes in Bermuda.

The profit generated by the company, Microsoft Round Island One, is equal to nearly three-quarters of Ireland’s entire gross domestic product (GDP) – even though it has zero employees.

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Biden corporate tax plan could earn EU and UK billions, study shows

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EU forecast to reap extra €50bn per year with UK expected to gain €200m from BP alone

A proposal to be tabled by the US president, Joe Biden, at the upcoming G7 meeting for a 15% global corporate tax rate could reap the EU €50bn (£43bn) a year, and earn the UK nearly €200m extra alone from the British multinational BP, according to research.

Should the tax rate be set higher at 25%, the lowest current rate within the seven largest world economies, the EU would earn nearly €170bn extra a year – more than 50% of current corporate tax revenue and 12% of total health spending in the bloc.

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‘Silicon Six’ tech giants accused of inflating tax payments by almost $100bn

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Study claims firms paid $96bn less in tax between 2011 and 2020 than the notional figures cited in their annual reports

The giant US tech firms known as the “Silicon Six” have been accused of inflating their stated tax payments by almost $100bn (£70bn) over the past decade.

As Chancellor Rishi Sunak called on world leaders to back a new tech tax ahead of next week’s G7 summit in the UK, a report by the campaign group Fair Tax Foundation singled out Amazon, Facebook, Google’s owner, Alphabet, Netflix, Apple and Microsoft.

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Government considers BBC shake-up after damning Diana report

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Ministers to mull governance overhaul after inquiry condemns Martin Bashir’s 1995 Panorama interview

Damning findings about Martin Bashir’s 1995 Panorama interview with Diana, Princess of Wales, means the governance of the BBC and how it operates will have to be examined, according to a senior government minister.

The comments by the justice secretary, Robert Buckland, came as the Metropolitan police said they would “assess” the contents of John Dyson’s report “to ensure there is no significant new evidence”, after previously deciding not to begin a criminal investigation.

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Nearly 40% of AstraZeneca investors reject boss’s bonus rise

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Covid vaccine maker passes its remuneration policy but suffers sizeable rebellion

AstraZeneca has suffered a substantial shareholder rebellion over proposals to hand its chief executive, Pascal Soriot, bigger bonus awards for the second consecutive year.

Nearly 40% voted against the policy, which could hand him pay and perks of nearly £18m for 2021.

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Football fans have shown how to take on corporate power and win | Owen Jones

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If popular outrage can have such a dramatic effect in football, then why not in even more consequential areas of life?

If the age of There Is No Alternative has an ethos, it is this. Elected governments no longer have any levers to pull: their powers have been usurped by multinational corporations with no respect for borders, and politicians can merely surf passively on the choppy waters of the markets. Collective action from within civil society to secure lasting reforms has been permanently neutered, because governments lack the power to concede, and the fragmentation of society has reduced us all to isolated individuals looking after our own.

Related: The European Super League is the perfect metaphor for global capitalism | Larry Elliott

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G20 takes step towards global minimum corporate tax rate

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Meetings of finance ministers follow change in US stance, with consensus growing on tackling tax avoidance

G20 finance ministers are exploring a global minimum tax on corporate profits, amid growing international consensus on tackling avoidance after the pandemic.

The virtual meetings between the group of 20 major industrial nations come after the US made the case for an international base rate this week, in a move by the Biden administration to end US resistance to international tax reforms.

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HSBC denies taking political stance over China’s crackdown in Hong Kong

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Bank’s chief executive, Noel Quinn, claims business not in position to question police requests

HSBC’s chief executive has denied taking a political stance on China’s crackdown in Hong Kong, claiming the bank was not in a position to question police requests when it agreed to freeze accounts of pro-democracy activists.

Questioned by MPs on the foreign affairs committee on Tuesday, Noel Quinn ruled out exiting the Hong Kong market in light of Beijing’s controversial new security laws, saying it “would only harm” local customers.

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British Virgin Islands’ governor launches inquiry into alleged corruption

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Gus Jaspert’s extraordinary step comes amid claims of a climate of fear in the UK overseas territory

Allegations of widespread political corruption, misuse of taxpayer’s money and a climate of fear in the British Virgin Islands have led its governor to take the extraordinary step of establishing an independent judge-led inquiry into the claims.

Gus Jaspert, the British-appointed BVI governor, with the personal backing of the UK prime minister, has established a commission of inquiry to investigate concerns over governance, including specific allegations that point to possible corruption and infiltration by serious organised criminal gangs. The six-month inquiry, to be led by Sir Gary Hickinbottom, follows the discovery by police in November of a haul of cocaine worth more than £190m.

Jaspert broke the news to the island on Monday after returning from the UK, where he was on leave. It was reported that he had been struggling with his communications systems in recent weeks, and complained to the premier, Andrew Fahie, but said nothing was done, forcing him to ring newsrooms individually.

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Top UK bosses are paid 115 times more than average worker, analysis finds

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Vast gap in earnings described as ‘unfair’ and ‘repugnant’ by trade union leaders

Bosses of top British companies will have made more money by teatime on Wednesday than the average UK worker will earn in the entire year, according to an independent analysis of the vast gap in pay between chief executives and everyone else.

The chief executives of FTSE 100 companies are paid a median average of £3.6m a year, which works out at 115 times the £31,461 collected by full-time UK workers on average, according to research by the High Pay Centre thinktank.

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