Towards transparency

A cautious welcome for Vince Cable’s reform

Share

As this newspaper’s campaign to end the scandal of corporate tax avoidance has shown, the key to making companies that make their living here pay their fair share is transparency. Vince Cable’s proposed reforms are revolutionary in their potential. No longer, if these proposals are adopted, will individuals and companies be able to shelter behind offshore trusts and private companies in secretive financial regimes trailing round the world, from Switzerland to the Caribbean and back again.

Mr Cable needs to be sure of doing two things as he works his way towards legislation. First, he has to ensure an adequate regime of punishment for transgressors, and this goes for dishonest or negligent directors, too. One of the great mysteries of the financial crash of 2008-09 is how so few of the directors and executives who drove their banks to ruin suffered even the mildest of punishments – set against the wrecking of an economy, they can fairly be said to have got away with it.

Second, he’ll need to ensure that the spirit and purpose of what Parliament intend cannot be frustrated by the army of tax accountants and advisers whose job it is to flout the will of the people. As Chancellor, Gordon Brown tried to do something similar with domestic tax evasion, requiring accountancy firms to declare any schemes they hatch. That has not had the impact expected or desired, thanks to the habitual ingenuity of the “tax professionals”. Mr Cable, smart as he is, has his work cut out to beat them at their own game.

React Now

Latest stories from i100
iJobs Job Widget
iJobs General

Ashdown Group: Marketing & Sales Manager

£40000 per annum: Ashdown Group: A reputable organisation within the leisure i...

Tradewind Recruitment: Science Teacher

£90 - £140 per day: Tradewind Recruitment: I am currently working in partnersh...

Recruitment Genius: Doctors - Dubai - High "Tax Free" Earnings

£96000 - £200000 per annum: Recruitment Genius: Looking for a better earning p...

Recruitment Genius: PHP Developer

£32000 - £36000 per annum: Recruitment Genius: A rapidly expanding company in ...

Day In a Page

Read Next
British Prime Minister Tony Blair (L) pictured shaking hands with Libyan leader Colonel Moamer Kadhafi on 25 March 2004.  

There's nothing wrong with Labour’s modernisers except how outdated they look

Mark Steel
 

Any chance the other parties will run their election campaigns without any deceit or nastiness?

Nigel Farage
Isis hostage crisis: The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power

Isis hostage crisis

The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power, says Robert Fisk
Missing salvage expert who found $50m of sunken treasure before disappearing, tracked down at last

The runaway buccaneers and the ship full of gold

Salvage expert Tommy Thompson found sunken treasure worth millions. Then he vanished... until now
Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Maverick artist Grayson Perry backs our campaign
Assisted Dying Bill: I want to be able to decide about my own death - I want to have control of my life

Assisted Dying Bill: 'I want control of my life'

This week the Assisted Dying Bill is debated in the Lords. Virginia Ironside, who has already made plans for her own self-deliverance, argues that it's time we allowed people a humane, compassionate death
Move over, kale - cabbage is the new rising star

Cabbage is king again

Sophie Morris banishes thoughts of soggy school dinners and turns over a new leaf
11 best winter skin treats

Give your moisturiser a helping hand: 11 best winter skin treats

Get an extra boost of nourishment from one of these hard-working products
Paul Scholes column: The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him

Paul Scholes column

The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him
Frank Warren column: No cigar, but pots of money: here come the Cubans

Frank Warren's Ringside

No cigar, but pots of money: here come the Cubans
Isis hostage crisis: Militant group stands strong as its numerous enemies fail to find a common plan to defeat it

Isis stands strong as its numerous enemies fail to find a common plan to defeat it

The jihadis are being squeezed militarily and economically, but there is no sign of an implosion, says Patrick Cockburn
Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action

Virtual reality: Seeing is believing

Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action
Homeless Veterans appeal: MP says Coalition ‘not doing enough’

Homeless Veterans appeal

MP says Coalition ‘not doing enough’ to help
Larry David, Steve Coogan and other comedians share stories of depression in new documentary

Comedians share stories of depression

The director of the new documentary, Kevin Pollak, tells Jessica Barrett how he got them to talk
Has The Archers lost the plot with it's spicy storylines?

Has The Archers lost the plot?

A growing number of listeners are voicing their discontent over the rural soap's spicy storylines; so loudly that even the BBC's director-general seems worried, says Simon Kelner
English Heritage adds 14 post-war office buildings to its protected lists

14 office buildings added to protected lists

Christopher Beanland explores the underrated appeal of these palaces of pen-pushing
Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Scientists unearthed the cranial fragments from Manot Cave in West Galilee