Barclays under fire over African tax haven promotion
UK lender hails Mauritius as 'offshore financial centre of choice for India, sub-Saharan region'
Barclays has come under fire for promoting the use of offshore tax havens as a route for companies investing in Africa.
In a report published last week, ActionAid says Barclays' marketing of offshore tax jurisdictions undermines the bank's stated ambition to be a "force for good" as these places can be used by companies to reduce the tax paid in the African countries where they work. The report does not directly accuse Barclays, or the companies it works with, of tax avoidance or suggest any illegal activity.
"If people want to put their money offshore, they'll find a way to do it, but Barclays should stop promoting this. It is inappropriate for a bank looking to be a force for good, and aiming to expand in Africa, to do this," said Toby Quantrill, tax justice adviser at the non-governmental organisation.
He said Barclays should do more to help companies invest directly in African countries. "If you're going to be a big player in Africa, you should promote and support the development of infrastructure for direct investment in these countries."
Barclays needs to do far more to show that it is living up to the standards
Estimates suggest African countries lose billions of dollars in unpaid taxes each year - and far more than they receive in foreign aid. Tax has risen up the global development agenda in light of such figures, with NGOs and high-level officials condemning tax avoidance as putting at risk poor countries' prospects for development and self-sufficiency.