City of Edinburgh Council has refused to publish the names of tax-avoiding businesses on three of the city’s busiest retail streets.
The Herald sent a Freedom of Information (FOI) request to the local authority asking for the names of all businesses registered to pay non-domestic rates on Princes Street, George Street, and the Royal Mile.
The Herald also asked the council to specify whether or not the businesses listed had paid rates during the last two financial years.
While the local authority provided a city-wide list of registered rate payers, it declined to provide the names of businesses which had not paid their rates, citing “commercial sensitivity”.
“We do not publish details of outstanding debts, and this information will not be provided to you,” the council’s FOI response stated.
The Herald asked for the names of businesses not paying non-domestic rates on Princes Street in Edinburgh. (Image: Colin Mearns/Herald and Times)
The local authority has claimed that the data is protected from disclosure under Section 33(1)(b) of the Freedom of Information (Scotland) Act 2002.
The provision states that information can be withheld from the public if it is likely to “prejudice substantially the commercial interests of any person”.
According to City of Edinburgh Council’s response: “Commercially sensitive information such as company debts cannot be released.
“The Council's view is that disclosure of this information to the public at large is likely to substantially prejudice the commercial interests of the businesses, as placing into the public domain their financial position and debts may negatively impact their business.
“These businesses have no expectation that such financial information will be published.”
However, the law requires that the public interest test be carried out before making a decision on whether to withhold information.
“The Council appreciates the public interest in ensuring that it receives non-domestic rates from businesses,” the response stated.
“However, if the Council were to release this information into the public domain, it would cause substantial harm to the commercial interests of the business, as it could harm their reputation.
“The Council therefore finds that the public interest in providing this information is outweighed by the Council’s need to maintain confidentiality on such matters.”
