Tied hands and closed eyes: 3 ways FfD can remove international obstacles to effective taxation FfD...
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![Page 1: Tied hands and closed eyes: 3 ways FfD can remove international obstacles to effective taxation FfD regional consultation, Panel 3: Creating conducive.](https://reader034.fdocuments.us/reader034/viewer/2022042615/56649d705503460f94a53373/html5/thumbnails/1.jpg)
Tied hands and closed eyes:
3 ways FfD can remove international obstacles to
effective taxationFfD regional consultation, Panel 3: Creating conducive international frameworks for resource mobilization
23 March 2015, Palais des Nations, GenevaAlex Cobham @alexcobham
![Page 2: Tied hands and closed eyes: 3 ways FfD can remove international obstacles to effective taxation FfD regional consultation, Panel 3: Creating conducive.](https://reader034.fdocuments.us/reader034/viewer/2022042615/56649d705503460f94a53373/html5/thumbnails/2.jpg)
Major obstacles to taxation
• Tied hands–Norms (the ‘tax consensus’) and
–Governance (who makes the rules?)
• Closed eyes–Transparency (follow the money)
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1. Set better norms
• Revenue norm:Tax/GDP:
• Governance (& progressive) norm:Direct tax/expenditures:
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![Page 7: Tied hands and closed eyes: 3 ways FfD can remove international obstacles to effective taxation FfD regional consultation, Panel 3: Creating conducive.](https://reader034.fdocuments.us/reader034/viewer/2022042615/56649d705503460f94a53373/html5/thumbnails/7.jpg)
1. Set better norms
• Revenue norm:Tax/GDP: 20% minimum target?
• Governance (& progressive) norm:Direct tax/expenditures: 40% target?
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2. Sort out governance
• Who makes the rules? e.g.– Source vs residence?– Separate accounting or unitary tax?– Harmonisation vs ‘race to bottom’?– Exchange of tax information?– Transparency of ownership?
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Whose tax rules?
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Whose tax rules?
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Whose tax rules?
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2. Sort out governance
• An intergovernmental tax body– Truly representative (=UN)– Fully resourced (i.e. OECD+)– Rule-making power (but not law)– Statistical responsibility…
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3. Transparencyi. Fundamental for direct tax, & vs IFF–Public registers of beneficial ownership–Automatic and fully multilateral
exchange of tax information–Public country-by-country reporting
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3. Transparencyi. Fundamental for direct tax, & vs IFF
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3. Transparency
ii. Economic and financial globalisation– Global pattern of TNC activity, profit– Bilateral data on investment, trade
and banking stocks and flows
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Main proposals• Untie our hands
1. Appropriate tax norms2. Representative rule-making body
• Open our eyes3. Transparency of income, assets,
profits; and of bilateral economic and financial data
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Tied hands and closed eyes:
3 ways FfD can remove international obstacles to
effective taxationFfD regional consultation, Panel 3: Creating conducive international frameworks for resource mobilization
23 March 2015, Palais des Nations, GenevaAlex Cobham @alexcobham