A motion to support "international tax justice" and to promote "exemplary tax conduct" has been voted through by Gateshead Councillors.
The motion, introduced by the Liberal Democrat group, stated: "As recipients of significant public funding, local authorities should take the lead in the promotion of exemplary tax conduct; be that by ensuring contractors are paying their proper share of tax, or by refusing to go along with offshore tax dodging when buying land and property."
Gateshead Council has also pledged to promote the 'Fair Tax Mark' in companies or businesses in which it has a significant stake or where cooperation tax is due. The 'Fair Tax Mark' is awarded to companies who pay their taxes on time, in the right place and abide by "the spirit and letter of the law".
Read More: Gateshead Labour chief fears councils could go bust as economic turmoil creates budget nightmare
According to Council documents it has been "conservatively estimated" that around £17b of corporation tax is avoided and lost to the public coffers.
The motion also called for more powers to be allocated to local authorities to reward good tax practices or punish bad ones when Councils procure services from outside firms.
Liberal Democrat deputy leader and Low Fell councillor Ron Beadle said: "There are good companies out there and the 'Fair Tax Mark' is a way to enable those companies to take the credit to say we are doing things properly. It can also be something that can enter in when we are looking at the private sector partners with whom we work".
Coun Beadle went on to praise Timpson as an example of a transparent company. Timpson has a 'Fair Tax Mark' and publically declared pre-tax profits in May 2022 of £24,531,000 and paid £2,716,000 in tax.
Other 'Fair Tax Mark' companies include SSE, Co-Accounting, Lush Cosmetics, Co-op, and Capita. The motion was carried unanimously with support from both Labour and Liberal Democrat groups.
Read More:
-
Government approves plan to delay Newcastle Clean Air Zone pollution tolls until 2023
-
Northumbrian Water to install drainage pipe to reduce sea water contamination in Cullercoats Bay
-
'The damage is already done' – Truss and Kwarteng branded 'incompetent' after 45p tax rate U-turn
- Newcastle Clean Air Zone explained: Where it is, when tolls start, and who has to pay
- Eldon Square value plummets again – but 'five offers' to take over empty Debenhams store revealed
