Tuesday 9 July 2013

Should we boycott Twitter over its tax affairs? - The Guardian

Twitter has become the latest in a growing list of companies to cause raised eyebrows over its tax affairs. Over the weekend, it was reported in the Guardian that Twitter had retained profits in the UK last year of just £92,408. It seems a somewhat paltry sum considering the company is being tipped for an $11bn (£7.3bn) flotation.

"The abbreviated UK accounts point to the booming company using controversial corporate structures in Ireland to book fast-growing sales from British advertisers," noted the Guardian. Twitter refused to confirm that its UK sales are being routed through Ireland, but the revelation has further angered those demanding tax reforms.

However, a fundamental problem confronts those who might be considering a consumer boycott of any such company: is it realistic, or even possible, to live without the online services offered by companies such as Google, Amazon and Twitter, all of which have attracted negative headlines due to their tax affairs? After all, such companies boast a dominant position in their field and many would struggle to operate without them.

Tim Hunt is the director of Ethical Consumer magazine, which has been "helping people challenge corporate power since 1989". He says a "multiplicity of tactics" is needed to force change: "Everything from UK Uncut-style direct action through to writing a letter to your MP; all these actions are valid and necessary. We run a Boycott Amazon email campaign at the moment, but it has not been that successful. Our alternative buyer's guide is far more successful."

Hunt doesn't agree that there are no online alternatives to Amazon – Ethical Consumer currently recommends Better World Books, Books etc and Hive.co.uk – but does accept that boycotting Twitter would prove harder: "Twitter is a community. It is difficult to ask people to cut themselves off from their community. But Twitter users tend to connect well to social justice issues, so a Twitter storm over this issue is possible."

If the idea of Twitter users calling for a boycott of Twitter via Twitter is too postmodern for you, then Hunt says the tried-and-tested methods of protest still work. "No one is too sure what the best tactic is," he says. "The issue of tax avoidance is a grey area. There are no straight lines. But we know we need more transparency and tighter regulations, and policing of existing ones. Online petitions and letters to MPs are able to force change." (Websites such as Write to Them now let you email your MP directly. But avoid form letters. Succinct, personalised letters have more impact, says Hunt.)

He cites the success of the Change.org petition demanding that Amazon pay its "fair share" of tax in the UK, which attracted more than 169,000 signatures and prompted a debate in the Commons. He also says that companies "hate bad PR", as was proved when the coffee shop chain Starbucks voluntarily handed over £5m to the UK taxman last month following customer outrage over its tax affairs. "It was a huge admission of guilt when Starbucks gave that money," says Hunt. "It was a massive victory for UK Uncut and showed that direct action really works."

So don't fret too much about the method of your protest, insists Hunt. If you are prepared to make a noise, it will be heard, especially if you are part of a collective wave of anger.

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