Work in the spirit of service

Another chapter opened recently in the ongoing saga of multi-national corporations and the payment of tax. The European Commission demanded that Apple (the technology developer) pay €12 billion to the government of Ireland in back taxes. Apple seemed unhappy with this request, and the Irish government was initially uncertain how to react, as it felt it had gained advantage from the arrangement with Apple.

The problem is that large companies, who provide goods and services in a number of countries, find ways of avoiding the payment of tax at a reasonable level, comparable to what is paid by other companies or by private citizens. They amass huge resources, and have more money than do some small countries. In a sense, they operate “above the law”, because they choose which laws to subject themselves to, by choosing which country they claim to be based in. The situation is such that poor countries and small island nations are tempted to offer lower tax rates, just so as to attract some economic activity into their territories.

What is the purpose of taxation? The tax that is collected from people and companies pays for hospitals, roads, schools, police and so on. The multi-national companies receive the benefit from these. Their employees are educated in schools paid for by taxes. The companies use the roads to transport materials and goods. The employees may well benefit from public health systems, and so on. It therefore seems fair that, as they benefit from public services, the companies should contribute to the taxation system which pays for them.

The governments of the world are struggling to find ways of coping with the activities of these multinational companies. Fundamentally, each of the companies has an executive who can take clear decisions. The world, however, still does not. Part of the solution, therefore, must be some form of world government or world authority which can ensure that there are no tax havens, and that tax will be paid by “multi-national” corporations into a “multi-national” system.

But this is not the only change that has to be made. A change in the spirit of commercial enterprise is also necessary. Honesty and trustworthiness need to be regarded as essential qualities which should shine out from every individual and from every business. These qualities will themselves benefit everyone involved. Bahá’u’lláh wrote: “The eyes of this Wronged One are turned towards naught save trustworthiness, truthfulness, purity, and all that profiteth men." It should no longer be necessary for businesses to employ lawyers and accountants to try to find ways of hiding wealth, nor for the authorities to employ yet more lawyers and accountants to try to discover where it is hidden.

If the Bahá’í principle of seeing mankind as one family were accepted, this also would greatly reduce tax avoidance. People would not wish to cheat their own relatives, their fellow human beings!

Another fundamental principle of Bahá’u’lláh is that work should be performed in a spirit of service to others. He said further that when it is performed in this spirit it is a form of worship. The reason why any employment exists is simply that other humans need this work to be done, so the very performance of work is, logically, a service to others. A realisation of this truth should be coupled with a change of heart, and “work in a spirit of service” should become the measure of all human activity. Many multi-national companies would do well to realise this. Producing or providing more useful telephones, computers or browsers can be seen as service to others. So can providing tasty coffee. However, paying people to try to find tax loopholes can not.