Exclusive: 98 of the FTSE 100 companies are addicted to tax havens

By ActionAid’s Asha Tharoor

It is well known multinational companies use tax havens to dodge their bills. Last year ActionAid exposed how Grolsch owner SABMiller siphoned an estimated £100 million out of Africa, while Boots, Barclays and Topshop, to name just a few, have all been in the frame in the UK.

Tax-havens-cartoon But for the first time, as Chart 1 shows, we’re able to show the massive extent of tax haven use throughout the FTSE 100.

Ninety eight are using tax havens, where you’ll find a whopping 38% of all of their overseas companies located.

Our high street banks are the heaviest users with 1,649 tax haven companies shared between Barclays, HSBC, RBS and Lloyds. Barclays has 174 companies registered in the Cayman Islands alone.

Why on earth do multinationals chose to locate so many companies in tax havens? Britain’s biggest companies have some serious questions to answer.

Chart 1:

The-biggest-tax-haven-users-in-the-FTSE-100
Developing countries lose three times more to tax havens than they receive in aid each year. This prevents them from building up their own revenue base and keeps them more dependent on international aid. The same problem hits the UK exchequer too, with estimated losses as high as £18 billion a year.

From Vince Cable…

“Much of the shadow banking sector, a major contributor to the economic crisis, was only possible because of tax haven secrecy.”

…to George Osborne…

“We will also target tax evasion and off-shore tax havens… Everyone must pay their fair share.”

…politicians from the UK and around the world have talked tough on the need for a crack-down – but ActionAid’s research show UK multinationals continue to do brisk business in tax havens.

Our findings are of particular concern because many of the FTSE 100 groups are set to benefit from Treasury plans to give multinationals using tax havens an £840 million tax break, by relaxing the very rules designed to prevent abuse.

These same rule changes would also give the green light for UK companies, operating in the developing world, to siphon even more of their profits out of poor countries and into tax havens.

ActionAid is part of a global campaign, pushing to end tax haven secrecy at the G20 summit in France this autumn.

Please take action and add your voice here

See also:

• Profile of Richard Murphy, scourge of the tax avoiders – James Leppard, September 24th 2011

• FT takes apart Osborne’s Swiss tax deal – Shamik Das, August 30th 2011

• Osborne’s Swiss tax deal castrates international tax avoidance clampdowns – Daniel Elton, August 25th 2011

• Hypocrite Murdoch tells us how to vote yet avoids billions in tax – Claire French, July 11th 2011

• Why is Osborne relaxing anti-tax haven abuse legislation? – Martin Hearson, July 1st 2011

• Balls: “Rock and roll” time for tax avoiders – Dominic Browne, March 18th 2011

• Lucas launches campaign to end £16bn tax evasion scandal – Shamik Das, March 17th 2011

• Millionaire footballers exposed as the latest tax dodgers – Shamik Das, January 17th 2011

• Mail and Telegraph pull anti-tax-dodging ads – Shamik Das, January 4th 2011

• How ActionAid exposed tax dodging by brewing giant SABMiller – Chris Jordan, December 1st 2010

• A crackdown on tax dodgers will help the poor and make huge cuts unnecessary – Paul Collins, October 20th 2010

• Osborne, Mitchell and Hammond accused of tax avoidance – Shamik Das, October 18th 2010

• Ed Miliband turns up heat on Clegg over tax avoidance – Shamik Das, August 20th 2010

• More pressure on Clegg as we reveal real cost of Green’s £285m tax avoidance – Shamik Das, August 19th 2010

• To end aid dependency, developing countries need improved tax revenues – Martin Hearson, May 25th 2010

• Tackling tax avoidance is the fair way forward – Zoe Gannon, March 24th 2010

• Cameron’s MEPs vote against reforms to clamp down on tax dodgers – Shamik Das, February 11th 2010

http://twitter.com/studentsw_katie/status/123538537583874048 Katie

Exclusive: 98 of the FTSE 100 companies are addicted to tax havens: http://t.co/3j6H9p8J reveals @ActionAidUK’s @AshaTharoor
http://twitter.com/el_amster/status/123538669075308546 Amster

Exclusive: 98 of the FTSE 100 companies are addicted to tax havens: http://t.co/3j6H9p8J reveals @ActionAidUK’s @AshaTharoor
http://twitter.com/nicwirtz/status/123538703221129217 Nic Wirtz

Exclusive: 98 of the FTSE 100 companies are addicted to tax havens: http://t.co/3j6H9p8J reveals @ActionAidUK’s @AshaTharoor
http://twitter.com/ansonbailey/status/123544859956084736 Anson Bailey

Exclusive: 98 of the FTSE 100 companies are addicted to tax havens http://t.co/gLYp1JSr #ftse
http://twitter.com/pipistrelle/status/123545834146115585 Caroline Holland

“@leftfootfwd: Exclusive: 98 of the FTSE 100 companies are addicted to tax havens: http://t.co/9lc9xO0G reveals @ActionAidUK’s @AshaTharoor”
http://twitter.com/spsot/status/123548035010666496 Spir.Sotiropoulou

RT @leftfootfwd: Exclusive: 98 of the FTSE 100 companies are addicted to tax havens http://t.co/M2AzLIX8
http://twitter.com/paulstpancras/status/123549885919264768 paulstpancras

RT @spsot RT @leftfootfwd: Exclusive: 98 of the FTSE 100 companies are addicted to tax havens http://t.co/7eiQ3QwS < Corporate Welfare Bums
http://twitter.com/adpucci/status/123596504765177856 Pucci D

Exclusive: 98 of the FTSE 100 companies are addicted to tax havens: http://t.co/3j6H9p8J reveals @ActionAidUK’s @AshaTharoor
http://twitter.com/anthonyv82/status/123623750326435840 Anthony

Exclusive: 98 of the FTSE 100 companies are addicted to tax havens: http://t.co/3j6H9p8J reveals @ActionAidUK’s @AshaTharoor
http://twitter.com/philhollington/status/123645945324908545 Philip Hollington

RT @leftfootfwd: Exclusive: 98 of the FTSE 100 companies are addicted to tax havens http://t.co/7EhY1aL3
http://twitter.com/sueorton/status/123659649395335168 Sue Orton

Exclusive: 98 of the FTSE 100 companies are addicted to tax havens: http://t.co/3j6H9p8J reveals @ActionAidUK’s @AshaTharoor
http://twitter.com/danielelton/status/123662581398388736 Daniel Elton

@aaronjohnpeters @pennyred @ukuncut >> @ActionAidUK sniff out tax dodgers inc. Barclays, RBS and BT on @leftfootfwd: http://t.co/0XMwoLPc
http://twitter.com/lindackirby/status/123664891411300352 Linda kirby

Exclusive: 98 of the FTSE 100 companies are addicted to tax havens: http://t.co/3j6H9p8J reveals @ActionAidUK’s @AshaTharoor
http://twitter.com/actionaiduk/status/123667238946488320 ActionAid UK

Exclusive: 98 of the FTSE 100 companies are addicted to tax havens: http://t.co/3j6H9p8J reveals @ActionAidUK’s @AshaTharoor
http://twitter.com/esmepeach/status/123668091556204546 Esme Peach

Exclusive: 98 of the FTSE 100 companies are addicted to tax havens: http://t.co/3j6H9p8J reveals @ActionAidUK’s @AshaTharoor
http://twitter.com/therightarticle/status/123668340265852928 Michael

Exclusive: 98 of the FTSE 100 companies are addicted to tax havens l Left Foot Forward – http://t.co/d72hSm3r
http://twitter.com/lizziepoulton/status/123669194540724225 Elizabeth Poulton

Exclusive: 98 of the FTSE 100 companies are addicted to tax havens: http://t.co/3j6H9p8J reveals @ActionAidUK’s @AshaTharoor
http://twitter.com/kevinrogers01/status/123670566891827200 KevinRogers

Exclusive: 98 of the FTSE 100 companies are addicted to tax havens l Left Foot Forward – http://t.co/d72hSm3r
http://twitter.com/labour52rose/status/123677087172280320 Alex Braithwaite

RT @leftfootfwd: Exclusive: 98 of the FTSE 100 companies are addicted to tax havens http://t.co/SNDzGK1F
http://twitter.com/june4th/status/123678363654176768 Noxi

Exclusive: 98 of the FTSE 100 companies are addicted to tax havens: http://t.co/3UKmo4sC reveals @ActionAidUK’s @AshaTharoor RT @leftfootfwd
Anon E Mouse

With The Guardian Media Group being one of the biggest offenders of legal tax avoidance I cannot see why this article is being published on this fine blog.

Left Foot Forward should start uploading less articles inspired by individuals who are multi millionaires – Polly Toynbee for example with her stinking hypocrisy and start representing the working classes.

At least the three companies mentioned here, Boots, Top Shop and Barclays employ an awful lot of people in this country (perhaps that explains why the last Labour government rewarded all the bankers, city slickers and spivs in the way it did) which is a damn sight more than the Guardian Newspaper does.

Which is why this article should not have been published on a Labour supporting blog.

What is wrong with you people?
http://twitter.com/actionaiduk/status/123689591638212608 ActionAid UK

Exclusive: 98 of the FTSE 100 companies are addicted to tax havens: http://t.co/3UKmo4sC reveals @ActionAidUK’s @AshaTharoor RT @leftfootfwd
http://twitter.com/andreashufflebo/status/123690498178297856 andrea shufflebotham

well done @ActionAidUK on the front page of Metro story – 98 of FTSE 100 companies addicted to tax havens http://t.co/nv3eK3VN
Selohesra

Directors of these companies have obligations to their shareholders – it would be remiss of them to structure their affairs so as to pay more tax than they need to. It is no different to utilising tax efficient investing in ISAs by ordinary individuals.
http://twitter.com/chris_fenton/status/123691375219834880 Chris Fenton

I pay my tax, you pay yours, but these guys don't pay there's http://t.co/EwcmdJP1 what a smack in the face!
http://twitter.com/jhoncooper/status/123693174274273281 John Cooper

“Exclusive: 98 of the FTSE 100 companies are addicted to tax havens: http://t.co/JuwaUnG7 reveals @ActionAidUK < time to end addiction
http://twitter.com/liveinthegrey/status/123694408825704449 David Brown

quelle surprise? we bail out banks, they evade tax “@leftfootfwd: 98 of FTSE 100 addicted to tax havens: http://t.co/EZZF94Ai @ActionAidUK”
http://twitter.com/actionaiduk/status/123695613010395136 ActionAid UK

Thank you! RT @AndreaShufflebo well done @ActionAidUK on the front page of Metro: 98 of #FTSE100 addicted to #taxhavens http://t.co/HlRgDDRe
http://twitter.com/check_mbloging/status/123726595587457024 mBloging Tester

RT @spsot RT @leftfootfwd: Exclusive: 98 of the FTSE 100 companies are addicted to tax havens http://t.co/7eiQ3QwS < Corporate Welfare Bums
http://twitter.com/buffetfx/status/123741007014674433 nick buffet

Exclusive: 98 of the FTSE 100 companies are addicted to tax havens … http://t.co/9S67z8Vs
Leon Wolfson

@2 – Fine, then if they want to do business in this country they should lust have to pay, oh, the estimated difference which they’re scamming this country out of then.

Estimate high, and force them to release real figures.
Because this country has a responsibility to it’s people, too.

Anon EMouse – What’s wrong? Left wingers. Who actually hold beliefs which are not your xenophobic bigotry. That’s what’s “wrong”. Also, we can count, and see that the guardian is WAY down the list.

And you support the party who wanted to shovel more into the mouths of the “bankers, city slickers and spivs”. Indeed, you still are. Can’t have a balanced economy, gotta help your rich friends. You’re a hypocrite, of course.
Anon E Mouse

Leon Wolfson – Nice to see you back – I’d almost missed your incoherent inconsistent ramblings.

Since when was Polly Toynbee NOT a Left Winger?

Since when was The Guardian NOT a Left Wing newspaper?

Since when did Labour not reward bankers, city slickers and spivs like no other government in history?

Do you really not get my point or are you still a big New Labour man who has nothing to say except to be abusive and make things up in blogs?
http://twitter.com/guid0man/status/123772872660496384 Guy Manchester

Only 98?: 98 of the FTSE 100 companies are addicted to tax havens: http://t.co/IaTqBdrV
http://twitter.com/stillbluehrg/status/123773332788215808 Still Blue…

Only 98?: 98 of the FTSE 100 companies are addicted to tax havens: http://t.co/IaTqBdrV
http://twitter.com/paulhilder/status/123801475620151297 Paul Hilder

98 of the FTSE 100 companies are addicted to tax havens http://t.co/mNAqcHEs
http://twitter.com/geovanni218/status/123845275763752960 john peter ingamells

RT @leftfootfwd: Exclusive: 98 of the FTSE 100 companies are addicted to tax havens http://t.co/Rt2cHyBk
http://twitter.com/londoniww/status/124100117274959872 London IWW

#Capitalism: Exclusive: 98 of the FTSE 100 companies are addicted to tax havens http://t.co/TrzDKwct | #TaxAvoidance #Corporatocracy
http://twitter.com/modditydodds/status/124451240439586816 Knut Cayce

RT @leftfootfwd: Exclusive: 98 of the FTSE 100 companies are addicted to tax havens http://t.co/pX8JDLEP
http://www.leftfootforward.org/2011/10/look-left-14-10-11/ Look Left – Cameron bids Fox ‘thank you and goodbye’ | Left Foot Forward

[...] Exclusive: 98 of the FTSE 100 companies are addicted to tax havens – Asha Tharoor, ActionAid Share | Permalink | Leave a comment Comments > [...]
http://www.leftfootforward.org/2011/10/taking-on-the-tax-havens/ Taking on the tax havens | Left Foot Forward

[...] Tuesday, ActionAid exposed that 98 of the FTSE 100 companies are using tax havens, where they locate almost 40% of their overseas [...]
http://twitter.com/brit_newsman/status/125563616282943488 Dennis

#Occupy 98 of the FTSE 100 companies are addicted to tax havens http://t.co/wDLKcMz1
http://twitter.com/jinjirrie/status/125572132871741440 Jinjirrie

Filth – end offshore banking business RT @brit_newsman: #Occupy 98 of the FTSE 100 companies are addicted to tax havens http://t.co/NnhdexHA
http://twitter.com/ajit8_/status/125573650823905280 ajit8

Filth – end offshore banking business RT @brit_newsman: #Occupy 98 of the FTSE 100 companies are addicted to tax havens http://t.co/NnhdexHA
http://twitter.com/free2sayso/status/125578258912784384 Garry Howes

#Occupy 98 of the FTSE 100 companies are addicted to tax havens http://t.co/wDLKcMz1
http://www.leftfootforward.org/2011/10/hmrc-boss-dave-hartnett-vodafone-goldman-sachs-tax-dodging-deals/ Protesters demand resignation of HMRC boss for colluding with tax avoiders | Left Foot Forward

[...] also: • Exclusive: 98 of the FTSE 100 companies are addicted to tax havens – Asha Tharoor, October 11th [...]
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[...] Exclusive: 98 of the FTSE 100 companies are addicted to tax havens – Asha Tharoor, October 11th [...]