Prophetic Voices Discussion starters for church groups

Calling for Tax Justice

What is tax justice? Christian Aid has long believed in the importance of using our voice to call for economic justice, and in recent years we’ve focused on tackling the impact of corporate tax dodging on developing countries. We are speaking out at all levels – from the personal to the international, because we believe that changes in tax laws, systems and practices can have a hugely positive impact on the financial resources available for ending poverty. We are calling for the generous sharing of the Earth’s resources and for tax systems that work for the good of all. We believe that good tax – tax that works for the common good – is one way that the vision of a world in which everyone flourishes may come to be.

Prophetic voices Prophets in the biblical tradition are people of hope. The truths they declare are often difficult to hear, but they also bring good news and hope for the future. They confront us with a need to change, warning us what will happen if nothing is done but also showing us what the world could look like if things do change. They know how often we run away from unpleasant realities, but they always help us imagine a new and better future. Putting new things before our eyes, they absolutely refuse to let go of hope.

Front cover: In Musangezhi village, Zambia, poor farming families are in dispute with a mining company that is trying to relocate them. Our partners are working for a fair deal for the farmers, and challenge tax dodging in the extractives industry, which costs the country millions.

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Prophetic Voices: Calling for Tax Justice

The man in the tree Read together: Luke 19:1-10 Discuss • What memories, feelings or associations does the story of Zacchaeus bring to mind for you? • Since tax collectors were collecting taxes for the occupying Roman Empire, how do you think they might have been regarded by the local population? • What is significant about Jesus going to visit the house of Zacchaeus? How might people have reacted? • How might this story help us to begin thinking about tax collecting today? What are the values from which we might begin?

A tree stands in the dry landscape of Yabello, Ethiopia.

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The tyranny of taxes? Think Gather round a flip chart or a large sheet of paper. Sharing your experience and your knowledge together, write down as many different kinds of taxes that we pay as possible. Don’t forget to think about businesses too. If you run out of ideas, try an online search to see what you’ve missed! Do all of the taxes you’ve identified serve the same purpose? Some of the purposes of taxes are: • to provide services that we all need • to make sure that everyone has a basic standard of living • to have an impact on behaviour (eg to discourage the drinking of alcohol). What do you think are good uses of tax? Charles Adams, a tax historian, wrote:

‘How people are taxed, who is taxed and what is taxed, tell more about a society than anything else.’1 If Charles Adams is right, what does the tax system we have say about our nation or the world we live in?

Discuss What good principles for thinking about tax might we find in the Bible? What stories, sayings or teachings could we go to for guidance on this issue? A key challenge in engaging with Scripture today is to avoid two opposite temptations – either to focus too literally on instructions designed for a very different context, or to assume that because those contexts are so different, the passages have little or nothing to say to the contemporary debate. So it’s worth spending time with some key biblical texts and reflecting on their significance for today.

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Prophetic Voices: Calling for Tax Justice

An ancient code Read together: verses from Leviticus Tithing: a portion for the priests – Leviticus 27:30-33 ‘All tithes from the land, whether the seed from the ground or the fruit from the tree, are the Lord’s; they are holy to the Lord. If persons wish to redeem any of their tithes, they must add one-fifth to them. All tithes of herd and flock, every tenth one that passes under the shepherd’s staff, shall be holy to the Lord. Let no one inquire whether it is good or bad, or make substitution for it; if one makes substitution for it then both it and the substitute shall be holy and cannot be redeemed.’ Gleanings: leaving something for those who are poor or migrants – Leviticus 23:22 ‘When you reap the harvest of your land, you shall not reap to the very edges of your field, or gather the gleanings of your harvest; you shall leave them for the poor and for the alien: I am the Lord your God.’

Jubilee: a regular check on fair distribution of resources – Leviticus 25:10 ‘And you shall hallow the fiftieth year and you shall proclaim liberty throughout the land to all its inhabitants. It shall be a jubilee for you: you shall return, every one of you, to your property and every one of you to your family.’ The book of Leviticus offers us a glimpse into some very ancient ideas about sharing resources among the community and about redistributing them. Tithing meant that a portion of wealth was given to the priests, to support the religious life of the community. The instruction about gleaning created a system for making sure that there was always something provided for the very poorest. The year of Jubilee offers a vision for a very radical redistribution every 50 years; the earth was to be left fallow, slaves were to be set free and debts were to be cancelled, which meant that no one could simply go on accumulating more and more, and no one would languish forever in debt or slavery.

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These passages illustrate, from a very different context from our own, some of the good purposes of tax, of resources being shared by the community for different purposes; to ensure a fair (re)distribution, to pay for things the whole community valued, and to provide a service so that no one went hungry and that basic needs were met. These are still the main purposes of a taxation system today. • Where do you see parallels with this advice and practice in our own nation, church or community?

Paying your dues Read together: Romans 13:7 ‘Pay to all what is due to them—taxes to whom taxes are due, revenue to whom revenue is due, respect to whom respect is due, honour to whom honour is due.’ • How comfortably does Paul’s instruction sit with you today? • Are there any taxes that you would refuse to pay? • Are there any taxes you would like to pay, and to whom?

A testing question Read together: Mark 12:13-17 ‘Then they sent to him some Pharisees and some Herodians to trap him in what he said. And they came and said to him, “Teacher, we know that you are sincere, and show deference to no one; for you do not regard people with partiality, but teach the way of God in accordance with truth. Is it lawful to pay taxes to the emperor, or not? Should we pay them, or should we not?” But knowing their hypocrisy, he said to them, “Why are you putting me to the test? Bring me a denarius and let me see it.” And they brought one. Then he said to them, “Whose head is this, and whose title?” They answered, “The emperor’s.” Jesus said to them, “Give to the emperor the things that are the emperor’s, and to God the things that are God’s.” And they were utterly amazed at him.’

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Prophetic Voices: Calling for Tax Justice

In the story, the Pharisees and the Herodians are said to be utterly amazed at his answer. Many readers have been puzzled over this story. • Did Jesus answer the question? • What are the ‘things that are the emperor’s’? Professor Esther Reed suggests that a key to this passage lies in the verbs. Jesus’ questioners ask something like, ‘Is it allowed to give tax to Caesar?’ But when Jesus replies he uses different language. He says that they should give back, which has more of a sense of ‘returning’ or ‘restoring’. It’s the word that is used, for example, when Jesus returned the scroll to the attendant in the synagogue at Nazareth (Luke 4:20), or returned the boy with an unclean spirit to his father (Luke 9:42). Jesus’ choice of words emphasises that we do not have things that we own, which we can give, but that it is always about returning what is in our hands to others. It might remind us of Psalm 24:1, ‘The earth is the Lord’s and all that is in it’. Jesus’ questioners might have been hoping that he would say something about the Roman poll tax or about the Roman coins that some people thought idolatrous. Jesus doesn’t do that or answer the question of what precisely we ought to give Caesar. But he might have helped us look at the question of taxes in a slightly different way. • How might Jesus’ words change our approach to giving and even to paying taxes today? This verse from 1 Chronicles 29:14, part of a prayer of King David, is often used as an offering prayer in Christian worship: ‘For all things come from you, and of your own have we given you.’ • Have you ever prayed this prayer? What do you think of this idea that we own nothing for ourselves, but that everyone belongs to God? What difference could it make to the way we live?

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Tax and international development A story from Christian Aid’s work When Alice Dongyiri took up her role as assistant head teacher at Gbanyamni Methodist Primary School in Ghana, in 2008, it was common for classrooms to remain empty for weeks as children missed school to accompany their parents to their farms. Determined to ensure all the village’s children received a good education, Alice decided to address the problems that stopped parents sending their children to school. She secured support through the School Feeding Programme ensuring every pupil is guaranteed at least one good meal a day and parents are now eager to send their children to school to benefit from the scheme. The project is funded by the Dutch government, but tax revenue could enable the government of Ghana to fund it domestically and even expand it to reach every single school child.

Children at the Gbanyamni Methodist Primary School, part of the Ghana School Feeding Programme.

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Prophetic Voices: Calling for Tax Justice

Why tax matters for international development • Tax is the money that governments raise (from both people and businesses) to resource the infrastructure of a country’s life; things like education, water and sewage treatment, roads, healthcare, social welfare and development. Without a good tax system (in the sense of both fruitful and fair) no country can provide what is needed for a flourishing economy and a good life for its people.

• We know that governments in many parts of the world are struggling to provide the basic necessities for their people. When governments don’t have a reliable source of revenue from their citizens and businesses they cannot provide the services people need, and cannot, if they wish to, redistribute wealth to those who are poorest. • Tax dodging by some unscrupulous global companies is depriving poor countries of the revenues that could provide public services. There are complicated and highly secretive financial arrangements, made by some multinational corporations and some wealthy individuals that mean that significant tax revenue is lost to those places who can least afford it. Tax dodging costs poor countries billions of dollars each year. • Improved tax systems, and an end to tax dodging, could make a huge difference in the fight against poverty and hunger. Ending tax dodging would help give poor countries the means to lift themselves out of poverty. Many around the world are giving careful thought to tax reforms, which could bring fairness and a dignified life to all.

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Reflect ‘In well-governed societies, the politics of taxation has to do with building the infrastructure needed for life, citizenship and the free worship of God. How much of this should be paid for by public taxation is open to debate. At its most basic, however, good government provides conditions for people to flourish – going to school, getting married, staying safe, being subject to judgement in the event of wrongdoing… Tax provides the funds by which the common life of a society or people may be oriented toward peace and harmony.’2 Professor Esther D. Reed

Discuss • What do you think are the basic things that governments should provide for all the people they serve? What do you think should be paid for by taxes? • What things would you prefer to see paid for in other ways, by aid or charitable donation? • What part might the Church play either in participating in thinking about a good tax system, or in itself meeting the needs of citizens?

A story from Christian Aid’s work Foundation for the Development of El Salvador (FUNDE) is a non-profit organisation, formed 20 years ago, which works on tax and tax reform. The staff work to lobby and to assist the government of El Salvador in shaping and implementing a tax system that will help lift the country’s people out of poverty. For the past 15 years, El Salvador’s economy has had the lowest rate of growth across all the Latin American countries at just 2% GDP. This has made it very difficult to raise sufficient taxes and pay for all that the government would want to cover, for example funding pensions for its citizens and paying off international loans. Just as Britain has done since its rate of growth fell after the 2008 financial crash, El Salvador has run a government deficit to try and sustain expenditure. Theirs is actually much smaller in proportionate terms than the UK’s, but their weak international credit rating makes it impossible for them to fund a deficit equivalent to Britain’s. This makes an efficient tax system even more crucial. FUNDE has gained an enviable reputation as a source of wise advice to the government on tax issues. To maintain their independence they make sure none of their funders contributes too large a percentage of their costs. But Christian Aid’s support helps maintain a skilled staff with the potential to shape the El Salvador economy on a much larger scale than even the best village development project.   10

Prophetic Voices: Calling for Tax Justice

John Ellis, Moderator of the General Assembly of the United Reformed Church and a former Bank of England economist (pictured right), commented after a visit to FUNDE: ‘I have had the opportunity to discuss development issues in many contexts, including with the dedicated staff of the World Bank. But it was a delightful surprise to discover FUNDE in El Salvador. Spearheading their 40 staff were some hugely impressive people who had a clear and balanced analysis of the nation’s economy and carefully researched ideas for promoting forms of economic growth which will serve their long-term needs. Committed and local, the FUNDE staff were a special beacon of hope.’

Discuss • Did you know that Christian Aid is funding this kind of work? • What advantages might this work have over simply giving money to those in poverty? • Should tax regimes ever be designed to encourage multinational companies to work in developing countries?

Here is just a sample of the partners we work with on tax issues: - Latindadd in Peru - Centre for Budget and Governance Accountability (CBGA) in India - Action for Economic Reform in the Philippines - Zambia Council of Churches - Tax Justice Network Africa Could you pray for these partners? Find out more about them online to inform your prayers.

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What are partners around the world saying? Christian Aid has talked with our partners around the world about tax issues. Here is an example from Brazil. Our partners there say: ‘Psalm 72 gives us a picture of the king as the focus of justice and the common good. “For he delivers the needy when they call, the poor, and those who have no helper. From oppression and violence he redeems their life; and precious is their blood in his sight.” Psalm 72:12, 14

Christian Aid staff and partners meeting in Brazil to discuss tax justice.

In a society where there is an unequal distribution of income and capital among citizens, the function of the state from a theological perspective should be to eliminate that inequality whenever it affects the dignity of the individual and creates injustice.’ 3

Discuss Brazil is one of the most unequal countries in the world today, a place where the playgrounds of the rich can exist alongside the favelas of the poor. • Could it really be true that a new tax system could change this? What do you think? A nation’s system of taxation should be: • sustainable, enabling a robust and accountable state, which can create the environment in which free association and commerce can flourish • simple and transparent, so that it is easy to work out what different citizens and corporations should pay, and hard to evade

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• responsible in its impact on the global economic system • equitable, so that contributions are made in proportion to the ability of citizens and corporations to pay • redistributive, to militate against growing inequalities in wealth and power within and between nations.4

Prophetic Voices: Calling for Tax Justice

Tax and me: what do you think? Tax and charity One thing that’s distinctive about tax is that you don’t choose to pay it, if you want to stay within the law. It is part of what we do together as a society, for the common good. This makes it different from voluntary contributions. But Angus Ritchie, director of the Centre for Theology and Community, argues that this doesn’t make it different from something that Christians should regard as a holy and godly task, and that a good tax system can be ‘true charity’. ‘This theme has enduring relevance: the belief that our economic exchanges can indeed “promote a charity which is a participation in the life of God.” The promise of a good tax system is that it stops “charity” from being a set of oneway transfers ameliorating an otherwise unjust economic order. Rather, a tax system which promotes good governance, which enables the state to provide a robust, accountable framework in which civil society and commerce can flourish, and which shares the fruits of creation more equitably, can help every citizen to participate more fully in the true “charity” for which we were created.’ 4 Angus Ritchie • Reflect on Angus Ritchie’s words. Do they help us think about tax in a different way? • How do we, as Christians, hold together a sense of responsibility for all the money we have, give, and is taken from us in tax? • How do we understand ourselves as ‘good stewards’ of money?

Campaigners take to the road with the tax justice message. Prophetic Voices: Calling for Tax Justice

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A moral question and a question for faith On 12 November 2013, in a UK parliamentary hearing, Margaret Hodge, Chair of the Public Accounts Committee, told Google’s vice president for Europe, Matt Brittin: ‘We’re not accusing you of being illegal, we’re accusing you of being immoral.’ 6 Many people would agree that avoiding or evading tax is immoral, if it means that people in developing countries are left in poverty. • What moral questions are important now for you? • What questions of theology and faith have arisen for you in this discussion? • What will you do differently now?

From here on: how you can get involved Give Christian Aid wants, and campaigns for, laws that will make it harder for big companies to dodge UK taxes and will make sure that they are not getting unfair tax breaks. We want UK tax rules that don’t encourage big companies to avoid paying tax in developing countries. Christian Aid works with partners around the world who are advocating more just and fair tax regimes in developing countries, so that revenues can be fairly raised and spent for the good of all citizens. Changes to tax can make a real difference to those who are now living in poverty. All this work needs funding! Please commit yourself to tax justice by making, or increasing, a monthly gift to Christian Aid.

Act What could you do to mobilise your local church to campaign for tax justice? Head to our tax justice hub to find out the latest campaign actions to take, at christianaid.org.uk/tax

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Prophetic Voices: Calling for Tax Justice

Pray O God, whose son Jesus asked to stay at the home of a tax collector, give us wisdom as we wrestle with a complex world, give us generosity as we handle our own money, and give us justice as we ask where the money of others should be gathered and spent, for the good of all your people. Amen. We’ve published a report called ‘Tax for the Common Good’ which you might find helpful to explore these issues further. Download it from: christianaid.org.uk/taxforthecommongood

Endnotes 1 Charles Adams: For Good and Evil: The Impact of Taxes on the Course of Civilization, New York: Madison Books, 1991. 2 Tax for the Common Good, Christian Aid, p14. 3 Ibid, p35. 4 Ibid, p30. 5 Ibid, p31. 6 Ibid, p8.

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Poverty is an outrage against humanity. It robs people of dignity, freedom and hope, of power over their own lives. Christian Aid has a vision – an end to poverty – and we believe that vision can become a reality. We urge you to join us. For more of our worship resources for use in churches, schools, small groups or by yourself, go to christianaid.org.uk/worship

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