Reply to Aaron Peters – UK Uncut, responsibility and the logic of networked activism

Reply posted at – http://www.opendemocracy.net/ourkingdom/aaron-peters/uk-uncut-responsibility-and-logic-of-networked-activism

Aaron,

As I have commented in Stuarts article on LibCon on this subject, UK Uncut has to stand up and set some boundaries if peaceful protest is the goal. By not, it’s saying that it’s ultimately OK.

The autonomous nature means that anyone can take part in any way they see fit for protests.  As such UK Uncut cannot say with 100% certainty those causing the troubles on Saturday werent part of UK uncut.

The arguement could easily have swung the other way as well until the appearence of Brighton & Lewes Uncut & the following only support the idea that those causing trouble on Saturday WERE part of UK Uncut – http://www.bristol247.com/2011/03/30/bristol-blogger-the-ordinary-anarchists-and-why-they-went-to-london/?utm_source=feedburner

The fact both yourself, Guy, and Marina have all retweeted these messages only muddies the waters further and from what I see from those I follow, is leading to division and worry about whether UK uncut is still the right vehicle for people to challenge the cuts.

I’ve never hidden the fact I’m anti-cuts, but cant relate to or see how store closures will attract the gen public to join in or will achieve any stop to the cuts.  Any tax gap/avoidance shortfall isnt as big as many claim it is, and the £1.2bn (not £6bn as claimed  – source for £2.2bn Richard Murphy twitter conv) shortfall of Vodafone wont be chased as it’s done & dusted as are all the cases highlighted.  All are also legal under tax laws.

Moral, legal or not it’s in the past and wont be repaid by any of the firms concerned. Best that can be gained is going forwards, AFTER the law is changed to stop this. The Even if a change in law is agreed by Government, it will take months (likely 18+) to get reviewed and addressed, only to be watered down by MP’s and Lords anyway. It’s a valid argument/fight, but an inappropriate moment to raise.

Personally, if ukuncut was my idea, I’d have got the cuts fight back going 1st THEN bring up tax avoidance to help push the message home.

Meanwhile the cuts wagon rolls on, with almost all the public sector closures and job losses being completed TODAY!  Reversing this will cost billions, meaning reversal is highly unlikely by any government in this or even next parliament.

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Do these 35 business leaders still agree with Osborne?

http://www.telegraph.co.uk/comment/letters/8069609/Osbornes-cuts-will-strengthen-Britains-economy-by-allowing-the-private-sector-to-generate-more-jobs.html

Will Adderley
CEO, Dunelm Group
Robert Bensoussan
Chairman, L.K. Bennett
Andy Bond
Chairman, ASDA
Ian Cheshire
Chief Executive, Kingfisher
Gerald Corbett
Chairman, SSL International, moneysupermarket.com, Britvic
Peter Cullum
Executive Chairman, Towergate
Tej Dhillon
Chairman and CEO, Dhillon Group
Philip Dilley
Chairman, Arup
Charles Dunstone
Chairman, Carphone Warehouse Group
Chairman, TalkTalk Telecom Group
Warren East
CEO, ARM Holdings
Gordon Frazer
Managing Director, Microsoft UK
Sir Christopher Gent
Non-Executive Chairman, GlaxoSmithKline
Ben Gordon
Chief Executive, Mothercare
Anthony Habgood
Chairman, Whitbread
Chairman, Reed Elsevier
Aidan Heavey
Chief Executive, Tullow Oil
Neil Johnson
Chairman, UMECO
Nick Leslau
Chairman, Prestbury Group
Ian Livingston
CEO, BT Group
Ruby McGregor-Smith
CEO, MITIE Group
Rick Medlock
CFO, Inmarsat; Non-Executive Director lovefilms.com, The Betting Group
John Nelson
Chairman, Hammerson
Stefano Pessina
Executive Chairman, Alliance Boots
Nick Prest
Chairman, AVEVA
Nick Robertson
CEO, ASOS
Sir Stuart Rose
Chairman, Marks & Spencer
Tim Steiner
CEO, Ocado
Andrew Sukawaty
Chairman and CEO, Inmarsat
Michael Turner
Executive Chairman, Fuller, Smith and Turner
Moni Varma
Chairman, Veetee
Paul Walker
Chief Executive, Sage
Paul Walsh
Chief Executive, Diageo
Robert Walters
CEO, Robert Walters
Joseph Wan
Chief Executive, Harvey Nichols
Bob Wigley
Chairman, Expansys, Stonehaven Associates, Yell Group
Simon Wolfson
Chief Executive, Next

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A new leaf – blog more!

Following a well placed comment by someone on Liberal Conspiracy that my blog is, erm, well unloved and sparse I’m looking to address this.

So, my aim is to post at least every 2 days something, hopefully daily (work/health/family depending).  All I can offer is to try my best.

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Protesters really need to be transparent rather than distort the truth

Yet more worrying tweets thats becoming the norm with UK Uncut supporters

Unproven comments that an officer was provoking violence on 15th Jan, and was responsible for using CS spray today unprovoked:

http://twitter.com/#!/unitonehifi/status/31745934257823744

http://twitter.com/#!/johnnylil/status/31754367493218305

And then there’s this gem:

http://jwarren.co.uk/photos/protest/dayx5/student-protests_RAW0115.jpg/view

Now either Jonathan Warren has super sharp reaction times to capture this at the right moment, or as I suspect he was shooting his pics in burst mode.  The protester was actually pulling the officer, and this shot happens to look like the end of a punch.  If this really was as claimed by Jonathan, he’d post the entire burst stream of pics.

And that’s a big issue with protesters.  They crop pics, video and bend the evidence to fit their agenda rather than the truth.  If this is the way you intend to play, then when you’re found out you’ll kill the cause you’re fighting for and risking criminal & civil repercussions for.

Honesty & transparency is your best policy if you’re to claim police state and police brutality.

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How is aggressively invading private property possibly be classed as a peaceful protest?

2 Tweets today by Harry Cole sum up my growing unease at the lack of vision by UKuncut to use their massive follower base to attack the real issues – the cuts to public services.

http://twitter.com/#!/MrHarryCole/status/31764163143405568

@Red_Nick yes which is why its highly unlikely that’s all that happened. 20 people mobbing a copper is justifeduse of pepper tho

http://twitter.com/#!/MrHarryCole/status/31770157353279489

That’s all ukuncut is. A twitter war and some idiots stopping shops get about 0.00001% of their well earned profit @samhansford @adamramsay

Perhaps this is why there has been no TV coverage todays protests at all.

And thats why UK uncut should be really thinking about their stance on solely using their impressive following to waste an opportunity by focusing on tax avoidance – which INDIVIDUALS owe almost 6 times that the firms being focused on owe HMRC.

The sooner the UK Uncut followers who idolise Richard J Murphy stop this unwinable war on tax avoidance, the better.  If they dont, the cause will quickly sink due to getting to hung up on tax avoiders rather than the bigger picture of cuts to public services.

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Why wont Richard J Murphy allow comments against his views?

Surprised Tim Worstall hasnt picked up on this and commented yet.

The editor’s decision is final

But why wont you engage with all sides of your arguments Richard, instead of just those who buy your every word?

The sooner the UK Uncut followers who idolise you Richard wake up to your hypocrisy, the better for them.  If they dont, the cause will quickly sink due to getting to hung up on tax avoiders rather than the bigger picture of cuts to public services.

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Are tax avoidance protests becoming vendettas?

I posted Will tax avoidance protests achieve their goal? back in December 2010.

Following some exchanges with @chunkylimey tonight, I thought I’d post my views on the protests.

So far only a select few companies have been targeted by UK Uncut & their loyal followers.  The list is found at http://www.ukuncut.org.uk/targets.

My immediate views/questions are:

  1. If the protests really are about tackling tax avoiders, then what about the big accountancy firms used by these targets who advise these firms on tax matters?
  2. Why not highlight accountancy firms clients total tax avoidance figures, and shame the worst accountancy firms for helping clients avoid tax?
  3. Why not rotate the targets, such as HQ flashmobbing rather than let these other firms breathe a sigh of relief at Sir Phillip Green & Vodafone take all the flack?
  4. Why is there not a running list of tax avoiders, how they’ve avoid tax, on what and how much the government has lost out on?
  5. What about loopholes that let individuals avoid tax? Last figure I heard on the news was this accounted for almost 5x that avoided by companies operating in the UK.

I support UK Uncut, and hope the momentum carries on and the government addresses these issues that have lead to a record VAT rise and savage cuts to services.

But if the targets are only to be a select few companies, then either the campaign is a vendetta against these brands, or the movement has no idea to move on.  Unless all avoiders feel the heat, due to action on a regular basis (ie protest Tuesday) then the message & momentum will simply get lost – which would be a great shame!

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Has UK Uncut got the arguments wrong?

Saw the above named article on taxresearch.org.uk which you can read here which was in response to 8 fallacies that undermine the UKuncut tax protests.

Having read these, and Richard Murphy’s other posts, I have to say yes to the question above.  I also take great issue with Richard Murphy’s stance on tax lessening v avoidance.

ALL tax lessening is avoidance pure & simple. If we are to take the moral high ground and rightly target firms and individuals who are seeking to rob HMRC of tax revenue, then every penny avoided adds up.  You cant start legitimising one form of avoidance whilst demonising another. Its all avoidance

It seems several accountants are realising that their usually well rewarded advice which saves their clients money and earns them either bonuses or allows them to charge such high rates (naturally people pay well for good service) is catching up with them fast thanks to UK Uncut.  Perhaps this is why the joint tax institutes of the UK have issued new professional guidance to their members today. Gregory’s comment on taxresearch caught my eye:

By referring members of the relevant Institutes to these dicta of Lord Hoffman, the guidance continues to acknowledge the existence of a class of tax advoidance behaviour that even if labelled “artificial” and subject to perhaps agressive investigation by HMRC is still an area of legitimate advice. Do you agree?

If accountants really had morals on avoidance, then they’d simply present their clients with what is due and help them to pay it.  There would be no mention of lessening, as all avoidance would be moot point.

If mechanisms exist for individuals and companies to pay less tax, then these loopholes are what needs addressing not firms who only exploit them based on advice from their accountants!

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When is tax avoidence simply tax optimisation?

Having read I have no ethical problem with my actions as a chartered accountant & UKuncut winning the ‘propaganda war’ I’m starting to see a big chink in the armour of the protesters who are demanding the likes of Vodafone, Boots, Barclays, Arcadia and a whole raft of other firms pay their fair share of tax.

Lets be clear, if you could find a way of saving yourself £50 you would.  We all would.  For shopping we use price comparison sites, shop at store who have offers on etc etc.

This is effectively what company’s have been caught out on by UKuncut and others and the focus of their anger.  But surely the real focus should be on the accountancy firms who find and present these ‘loopholes’ to their clients.  For a huge reward in saving their clients vast sums, naturally.

What about HMRC who’s incompetence at tax collection and auditing allows companies and  individuals to get away with paying less tax than they should?

In September the BBC reported how Six million facing new tax bills due to £2bn of under paid & under collected tax.  I have seen estimates that all in, the HMRC failed to collect (through outright evasion, bankruptcies, false declarations scams etc) some £200bn over the last 3 years.  Not just from businesses, but from everyday people as well.

So what is the difference between avoidance, evasion or just incompetent tax collection?  Well if you follow the protesters stance on people avoiding paying tax, then there is no difference.  Which is probably why the Sun yesterday had an article referring to the protesters as  “30,000 anarchists”.

The Guardian also ran a story that Big business goes on the defensive as tax protesters win the propaganda war in which there was an interesting quote.

“One message of the protest – repeated by organisers online – is that ‘if the rich paid their tax, you wouldn’t need to make a single cut to any essential service’. It’s a compelling argument that is mathematically wrong but works because it divides people into ‘us’ and ‘them’ – one of the most potent clarion calls in history.”

One thing I have found interesting is that several high profile supporters and encouragers of the protests have fallen very silent now the media has bowed to their demands for more media attention to their protests.

As most will know, you cant unleash the media on a story and then control how they will report on it.  The media will always follow the story angle which will generate the most interest with their readers/viewers.  You also have to look at the circle of friends of those in senior media positions, and the business leaders worrying about protesters shutting their stores.  Oh, and naturally they’ll have some influential friends in governments to ensure favourable policies for their wealth.

Since the media has picked apart the arguement, several tweeters have fallen silent.  Could they have something that they’d rather remained between them and their (I assume) well paid accountants?  Could they have been up to some clever accounting of their own which could be seen by their followers as hypocritical?

One thing is certain.  The companies being faced with action by UKuncut wont take this regular disruption lying down.  I have no doubts they are busy with lawyers identifying protesters and organisers and looking to recover lost revenue, criminal damage, additional security measures as well as obtain restraining & banning orders.  This will easily stop the movement as quick as it started once big bills land on peoples laps.

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Will tax avoidance protests achieve their goal?

Will tax avoidance protests achieve their goal?

This is the burning question on many peoples lips watching the growing tax avoidance movement spearheaded by UKuncut.

You cannot deny that the protest movement and backlash against the likes of Boots, Vodafone, The Arcadia Group (Burton, Dorothy Perkins, Evans, Outfit, Miss Selfridge, Topman, Topshop, Wallis), Barclays & Cadburys to name a few. There are plenty of others. In fact most of the big corporations used by the protesters in their day to day lives do this. It’s just some can hide this better than others, or so far have been lucky to escape the attention of the protesters.

The aim is simple. To stop UK firms using legal loopholes to avoid UK tax by basing parts of their business in countries where tax is lower. The method so far has been by protests and store occupation which have lead to a number of high profile locations being closed, costing the companies concerned valuable revenues during their busiest time of year.

This is a tried and proven method, still being used in the ongoing protests against the rises of fees and the breaking of pre-election promises by Lib Dem MP’s.

But as ever there is a flaw in all great plans. And the biggest downfall will be media coverage. Yesterdays major action wasnt referred to in any great detail on live News channels. In fact most pulled live TV coverage, and anything reported became a snippet with the exception of Channel4 News.

So why the lack of coverage?

Circles of power. If you look at the government’s MP’s friends, supports and allies you will find a huge overlap in the companies targeted and the media protesters hope will take their message to the wider public not glued to twitter, watching the actions unfold.

The general public have sympathy with the students and the unfair fee increases proposed by the coalition government. Their protests are largely peaceful, and to be fair arent aimed at anyone other than the broad shoulders of government – who wont change their minds anyway.

But the protests of businesses, at such a volatile time for business is a subject most editors would rather steer well clear of. Those that have followed it so far, are unlikely to do so long term.

You also have the happy general public, who hate Christmas shopping at the best of times, but to not be able to get into their store of choice or be shopping in fear of the protesters that have just turned up on mass shouting, frightening the older people and those shopping with young children. The purpose of the protests will quickly turn against the protesters.

The real risk is this then impacts the valid protests against fees with the gen public linking all protests with students, and any further student protest involvement will almost certainly become negative.

The students and tax avoidance protesters must have asked themselves by now why is it only students and left wing activists (along with the rent a mob anarchists who’ll turn up at any demo) protesting against the spending review cuts? Why arent their fellow unionists showing any solidarity (as the hashtag trends) to their protests?

Are the protesters so far being used as cannon fodder to gauge public opinion?

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