The Labour Party wants pension funds to join other shareholders in demanding that companies sign up to the Fair Tax Mark.
The certification scheme was launched in 2014 and seeks to encourage and recognise organisations that pay the right amount of corporation tax “at the right time and in the right place”.
Making just a passing remark to pensions, Shadow Chancellor John McDonnell revealed his initiative to bring institutions such as pension funds, churches and trade unions to launch a shareholder campaign to demand companies sign up to the Fair Tax Mark.
Delivering his speech, McDonnell said that “we need to exert some power over our tax system”, noting that there is a “minority” who do not live up to the standards of those that “pay their taxes and support our community”.
“One way is to mobilise shareholder power to demand companies uphold basic tax justice standards. Numerous institutions from churches to trade unions and pension funds have large-scale shareholdings in many of the companies that avoid taxes,” he explained.
“So today, I’m announcing my intention to bring together these organisations to launch a shareholder campaign. We’ll be demanding companies sign up to the Fair Tax Mark standards, demonstrating transparently that they pay their fair share of taxes. So fair warning to the tax avoiders, we are coming for you.”