Public Procurement Project

Public procurement is the purchasing of goods and services on behalf of a public authority.

With large budgets and long-term contracts, public procurement has the potential to have a positive influence on how companies operate. A number of initiatives have been put in place so far to ensure that ethical procurement becomes the norm, such as the 2004 EU Procurement Directives and the 2007 Sustainable Procurement Action Plan.

However, there are not suitable legal frameworks to prevent companies receiving public contracts from using of tax havens and tax avoidance schemes….

Questions:

  • Are companies receiving large contracts from public bodies, and thus taxpayers money, using tax havens? Who are the companies?
  • Are companies engaging in this activity gaining multiple contracts from various councils across the country?
  • What are the main tax havens involved?
  • How much money are we talking about? What is the cost to the UK taxpayer?

Sources of data:

  • Council spending – Every transaction over £500 is available from individual councils, or from OpenlyLocal‘s website.
  • Company accounts – once the companies have been identified (from council spending), the subsidiary information can be found into company accounts. Usually available from their respective websites.

As with all TaxHack projects, this is open to comment and suggestion. See a problem or a solution? Please let us know.

 

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