Member updates
Fair Tax Foundation launches £450,000 community share offer to grow Fair Tax Mark accreditations fivefold
Social enterprise The Fair Tax Foundation has launched a community share offer on social investment platform Ethex looking to raise £450,000 to expand its operations and bring five times as many businesses into its progressive movement.
Across the globe, 35% of multinational profits (£1trn) are artificially shifted to tax havens each year, robbing the public purse of funding for vital public services such as transport and healthcare. The UK suffers from a corporate tax shortfall of £12.5bn each year because of this multinational profit-shifting.
Some 10 years ago the Fair Tax Foundation saw there was another way to do business. Since then, it has enjoyed a decade of steady income growth and seven consecutive years of surplus.
With the Fair Tax Mark, the gold standard responsible tax accreditation, the Fair Tax Foundation is central to a movement of progressive businesses that are proud to pay their taxes and celebrate the enormous contribution this makes to public services. Some 250 distinct trading businesses are Fair Tax Mark accredited, including FTSE-listed companies such as SSE and Marshalls, and household names such as Lush, the Coop and Timpson. Collectively, Fair Tax businesses employ over 275,000 people and contribute more than £1.7bn in corporation tax annually.
Co-operatives and social enterprises were early pioneers of the Fair Tax Mark, with Midcounties, Scotmid, Energy4All, Suma and the Co-op being amongst the first businesses to become certified. These have since followed by other well-known co-operatives and social enterprises such as Arup, Jerba Campervans and Lendology
In order to increase its impact on creating a fairer society, the Fair Tax Foundation will use the new investment to:
– Create a new sales and business development team, broaden its product offering, expand its back-office and recruit and train new technical staff
– Increase its income from c.£500,000 to c.£2mn per year
– Quintuple its corporate engagement in the UK and overseas, leading to hundreds more Fair Tax Mark accredited companies
Fair Tax Foundation Chief Executive Paul Monaghan said: “This share offer is a rare opportunity to buy community shares in, and become a member of, the Fair Tax Foundation – with subscribers becoming shareholders in the Society alongside existing members. We believe the more businesses that stand up for responsible tax conduct, the more likely legislators are to create better laws, and the more likely regulators are to implement those laws robustly. Since our inception a decade ago, much has been achieved in reversing the global race to the bottom on corporation tax. But there is still so much more that needs to be achieved, both in the UK and across the globe. By supporting us to scale up our business, investors will help expand our influence, bolster public coffers and help steer the economy in a more enlightened direction at this critical moment in history.”
Ethex CEO Lisa Ashford said: “We are very excited to offer our community of investors the opportunity to support this share offer. We see it as a great chance to use your money to help create a more just and equitable world where corporations pay their fair share of tax and everyone in society can reap the benefits.”
The offer opens on 2nd September for a period of three months – targeting an initial annual return of 6%, and UK base rate plus 1% thereafter. There is a minimum investment threshold of £200, and a maximum of £60,000 for individuals and £100,000 for organisations. As with all investments of this nature, capital is at risk and returns are not guaranteed.
Investors can participate in the offer via the Ethex investing platform at https://www.ethex.org.uk/invest/fairtax
Notes to editors:
Fair Tax Foundation was established as a not-for-profit social enterprise in 2014, and is registered with the UK’s Financial Conduct Authority as a Community Benefit Society. It’s rules incorporate a statutory “asset lock” to ensure that any retained surpluses are used solely for the promotion of good corporate tax conduct.
Ethex aims to help everyday people make ethical investments that fund extraordinary organisations.” It is a not-for-profit with a mission to ‘make money do good’, and has spent the past ten years creating a vibrant marketplace for positive investment.
Community shares are withdrawable shares that cannot be sold, traded or transferred between members, unlike shares in a typical company. Members are entitled to one vote, regardless of how many shares they hold. Members can be paid interest on their shares, and can withdraw their shareholding (along with any interest accrued) by selling shares back to the Society, subject to the board’s approval. Any money invested is fully at risk and is not protected by the Financial Services Compensation Scheme.
