Shocks & Stares

May
2011

Corporate Tax Avoidance – How to tackle the PR challenge

How should companies deal with direct action and online activism in light of accusations of corporate tax avoidance? That was the question that was posed by Communicate magazine last week.

In response, recession has, unsurprisingly, led to a greater level of awareness among consumers regarding how businesses behave. Subsequently, I would suggest that there’s renewed justification to put the company accounts to the same scrutiny and rigour that apply to other aspects of the organisation when it comes to issue preparedness.

Corporation Tax has become a lightning rod for large companies

In short, if there appears to be a problem with the numbers, engage the communications professionals in the same way you would when it comes to other operational matters.

The stance taken by those who have been brave enough to defend their positions thus far has talked of wider corporate contribution, including employment numbers and payroll. This is not wrong. However, I do believe there’s a need to move the debate on, as was tried by the Treasury’ s David Gauke recently who argued that Corporation Tax fundamentally affects employees, who have to foot the bill. A debateable point, but worth voicing.

I’m not kidding myself, the subject of tax is a difficult one to reframe as we’re all familiar with and contribute to the system. However, in light of the fact that the UK public largely supports the capitalist system that’s in place, I believe there’s the scope to evolve the arguments.

Please note: This post was originally posted by Peter Roberts