Is tax just a question of ethics?

In the wake of Starbucks’ tax U-turn, we need to acknowledge that multinationals already choose whether to pay tax or not - and make them pay their fair share.

So Starbucks is paying up.

Whether or not they will ever pay back all the tax they’ve allegedly avoided is still unclear. But the company’s announcement yesterday that they will “pay or pre-pay” around £20m to the Exchequer in the next two years is hugely significant for all sorts of other reasons. It proves the power of consumer democracy, showing that damage to a brand can reverse a company’s behaviour in a matter of weeks. It moves tax from the backroom of a tax negotiation to the heart of a corporation’s public responsibility to the countries and communities where it does business. And it throws the gauntlet down to other multinationals which use exactly the same kind of intra-company payments to shrink their tax bills, not just in the UK but around the world.

But some are already raising concerns that Starbuck’s back-down heralds a worrying new age of voluntary tax: at best, companies claiming that paying tax is philanthropy rather than legal duty, at worst a sort of ‘tax by mob rule’. The New Statesman’s Martha Gill argues that we’re approaching “a tax system which relies on public pressure to a few high profile firms” rather than changing the rules themselves.

Of course we need to change the rules, and we can’t rely simply on companies behaving themselves. Nor should we be replacing clear, certain tax laws with judicial or media activism. But the unappetising truth is that we are already living in an age of voluntary corporate tax for large multinationals, and have been for some time. If this is true in the UK, where online businesses can effectively choose whether to book their profits from UK sales in the UK itself or in a tax haven, then this is even more the case across Africa, Asia and Latin America, where countries lack our armour of anti-avoidance legislation, and whose tax inspectors are far more overstretched than even cuts-threatened HMRC.

In this environment, it’s gone largely unremarked that a few multinationals are already taking a different tack in complying with the "letter of the law". Financial services firm Hargreaves Lansdown, for example, has no tax haven subsidiaries, despite operating within a sector no stranger to "offshore". Legal and General explicitly aims to be categorised within the "low risk" category of HMRC’s risk rating. This is not to endorse these companies’ business practices, or even their tax affairs, but to point out that companies already make active choices, all the time, about their tax structuring. Starbucks’ announcement may go further than the others, and beyond the existing rules. But ironically, their corporate spin on their "voluntary" tax payments is actually a refreshing shot of reality: it calls a spade a spade, acknowledging that the rules are currently so wide that companies can indeed choose whether to pay tax. That’s an ethical choice, whether we like it or not.

Changing the rules to stop corporate tax being just “a bit of a bonus”, to be paid as and when companies choose, will ultimately require international action. To take just one slightly technical example: stopping companies booking their "UK" profits through Irish or Luxembourgish subsidiaries may arguably require strengthening the tax-law definition of a "permanent establishment", to allow national tax authorities to tax profits actually generated in a given country by a low-tax affiliate company registered elsewhere, and prevent that company’s profits floating free like a pirate ship in international waters. A change that will need to be written into both domestic laws and dozens of international tax treaties. And far more far-reaching reform is needed than that.

Next year offers a raft of vital opportunities at the G8 and elsewhere to start changing the international rules in earnest. Like all international action, it will take some time. In the meantime, countries all around the world, including the poorest, are haemorrhaging revenues into tax havens faster than they receive aid. While we wait for the rules to be changed, other multinationals need to explain why they now can’t or shouldn’t start paying their fair share of taxes: companies like Grolsch and Peroni owner SABMiller, whose perfectly legal Starbucks-type transactions we estimate have deprived African and Asian countries of enough revenues to put a quarter of a million children in school. It’s right that consumers should put these questions to companies. And that governments too should use their purchasing power to stop buying from tax avoiders, as a quiet announcement tucked away at the back of yesterday’s Autumn Statement suggests the UK government is mulling. At stake is not just a guilt-free cup of coffee, but revenues that are needed – right now – in the UK and some of the world’s poorest places.

Starbucks. Photograph: Getty Images

Mike Lewis is a tax justice campaigner at ActionAid

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Welcome to feminism's new gross out frontier

This new movement normalises women by focusing on their bodies, warts and all.

Vaginas are so hot right now. If that sentence shocks you, then you’ve been out of the cultural loop. Thanks to a new wave of television and autobiographies by some very funny women, female privates have moved to the front and centre of popular entertainment.

Male bits, once the only game in town, are now chiefly of interest only as a sidebar to hilarious female riffs on misfiring, awkward and unsatisfactory sex, thanks to recent work by the likes of Lena Dunham, Britain’s Phoebe Waller-Bridge (writer, actor and star of BBC series Fleabag), and now Amy Schumer, whose smash hit “femoir”, The Girl With the Lower Back Tattoo, recently hit stores.

This is all part of a new movement – what I like to call “gross-out feminism”. It is gleeful, honest to a fault, and practised exclusively by women who long ago kissed goodbye to the capacity to be embarrassed. Its goal – apart from to make people laugh – is to provide a kind of shock therapy to those still harbouring the notion that women don’t have bodily functions, trapped gas, or insubordinate periods. Or that women must either be thin or desperately wishing they were so.

Gross-out feminism works by normalising women through focusing on their bodies: traditionally, the first and final frontier of femininity. It violently pushes all remaining cats out of the bag. Women have smelly, sometimes even extremely malodorous vaginas – Schumer’s smells like “chicken ramen”; “baby diaper” morning breath; explosive diarrhoea; acne. They sometimes fart during sex.

You’d be right if you noticed that this type of feminism doesn’t look like the iconic polemics of Shulamith Firestone, Naomi Wolf or Germaine Greer. It does not fit the sociological paradigm of Natasha Walter, Ariel Levy or Laurie Penny, all of whom have tackled a classic 20th century feminist subject – objectification – with political panache. And no, it’s not related either to the brainy fiction of Erica Jong or Marilyn French.

But gross-out feminism owes much to these. The classic texts of feminism laid down the parameters of the various struggles women engage in on a daily basis. One of these was the battle to be taken as full humans, complete with an independent sexuality. As far back as the 1790s, Mary Wollestonecraft raged against the reductive construction of doll-like femininity.

The new feminism builds on all this, but its toolbox is drawn not from an intellectual arena but rather from a peculiarly modern fascination with personal and especially sexual transparency. Honesty shall set us free: as sociologist Richard Sennett lamented, we moderns trade first and foremost in intimacies. But wrapped tightly in gut-busting hilarity, the relentless personal honesty of Schumer et al loses its potential for hollow narcissism and instead becomes powerful, adding vim to the traditional message to women to be strong and confident.

Schumer in particular paints an honest, if troubling picture of the impact of what Naomi Wolf so famously addressed in The Beauty Myth. Money, pain, time: a bewildering amount of these are required in order for most women to feel presentable, let alone attractive. Schumer nails this, but also admits to her own “beauty myth” victimhood.

Before a date she too waxes, straightens her hair, fasts, and tries to squeeze into Spanx so tight that they threaten to splice her guts in two. Schumer, then, is taking one for the team. She’s performing her truth so that we can exorcise our demons. The intriguing implication is that she, like Dunham and Fey, is an everywoman as well as herself. “I am myself,” in her words. “And I am all of you.”

A new sisterhood

Might this signal a reinvigoration of the idea of a universal “sisterhood” that since the 1970s has buckled under the weight of concerns about racial, ethnic and class difference? Perhaps so.

In her hit sitcom Fleabag, Phoebe Waller-Bridge does similar work to Schumer, if less autobiographical. She doesn’t spend much time on her appearance, but when an attractive man calls in the middle of the night asking to come over, waking her up, she excruciatingly manufactures the appearance of having just come in from a night out. She throws off her pyjamas, pulls on her glad rags, a coat, and swigs some wine in preparation. She is soon speaking deadpan to the camera while being taken up the backside. Her sexual honesty is eminently relatable to by millennials, and tinged with sadness. Waller-Bridge’s genius is reading with jaded perfection the sexual proclivities of men half her intellect and beauty.

There are caveats, of course. Some might argue that bringing feminism back into the body merely reaffirms the idea that women are principally bodies rather than whole people. And putting sex front and centre emphasises a potentially one-dimensional representation of what it is to be human. Both of these objections are fair. But when it comes to mainstream, massively entertaining representations of women, gross-out feminism may finally be what has been missing all these years, showing once and for all that the “fair sex” is human in both body and spirit. Warts and all.

Zoe Strimpel is a doctoral researcher in history at the University of Sussex

This article was originally published on The Conversation. Read the original article.