SSE is first FTSE 100 company to gain Fair Tax Mark
The energy company has been accredited by tax monitoring scheme.
SSE has become the first FTSE 100 company to be awarded the Fair Tax Mark.
The UK’s second biggest energy supplier is the largest company to be given the endorsement so far.
What is the Fair Tax Mark?
The Fair Tax Mark is an independent accreditation process for identifying companies making an effort to be transparent about their tax affairs.
It was launched in February 2014 as a joint venture between the Ethical Consumer Research Association, Tax Research UK and Up the Ethics to drive more responsible tax behaviour.
Corporation tax avoidance costs the UK economy billions of pounds every year and big names like Amazon, Google and Starbucks have hit the headlines for allegedly not paying their fair share.
The first companies to receive the Fair Tax Mark were Unity Trust Bank, Midcounties Co-operative and the Phone Co-op.
In September 2014 the Go-Ahead Group became the first FTSE 350 company to get the mark.
Leading the way
SSE has changed its tax reporting to comply with the Fair Tax Mark criteria and has set a new benchmark for the scheme as a large UK company with international operations.
The energy supplier will now provide information beyond the current requirements of UK company law to reveal all the information needed to assess whether it has paid a fair and appropriate amount of tax relative to its profits.
SSE paid £430 million of business taxes in 2013/14.
Alistair Phillips-Davies, Chief Executive of SSE, said the company was "proud to lead the way".
He added: “As a provider of an essential service SSE firmly believes it has a responsibility to contribute to the societies in which it operates. Paying the appropriate amount of tax is core to this; and we are determined to abide by both the spirit and letter of the UK’s tax regulations.
“Almost nine million SSE customers now have an independent guarantee that their energy comes from a company that seeks to pay the right amount of corporation tax, at the right time, in the right place and explains how it does that."
‘Game changer’
Richard Murphy, Director of the Fair Tax Mark, said it anticipated the accreditation of a major FTSE 100 company would be a "game changer" for the scheme.
Margaret Hodge MP, Chair of the Public Accounts Committee and a critic of many big companies' tax activities, said she hoped other companies would follow SSE’s example.
She said: “Too often companies hide behind commercial confidentiality to disguise their activities, claiming that transparency about their tax affairs would damage their competitiveness. I don’t buy that, and the public don’t buy that.
"SSE clearly feels it has nothing to fear – and potentially a lot to gain – from responding to public demands for greater openness. There is no excuse for other companies not to do the same, and make this new standard in transparency the norm, not the exception.”
It is hoped the Fair Tax Mark could soon become as prominent as the Fairtrade Mark in signalling which companies have ethical standards.
What do you think of SSE's move? Could it persuade you to become a customer? Let us know your thoughts in the Comments below.
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