La réduction des ressources fiscales en provenance des entreprises, facilitée par les stratégies d’évasion et d’optimisation fiscales des multinationales alimente depuis des décennies les inégalités au sein des pays et entre eux.
Under the proposals being negotiated, global profits of multinationals could be allocated through a formula, making the system more simple and reducing the opportunities for tax avoidance. A global minimum tax is also being discussed, something that would mitigate tax competition and the race to the bottom. The subject will come up again when the G7 finance ministers gather in Chantilly, France on July 17 and 18.
ICRICT supports the introduction of interim solutions by France and UK as they will put pressure on the ongoing negotiation process to reach a multilateral accord to overhaul the international tax system.
ICRICT commissioner Eva Joly is a a former investigative judge and was for ten years a member of the European Parliament. She has renowned track record in fighting corrupt activities and financial crime at the highest echelons of business and politics.
Group of 20 finance ministers agreed on Saturday to compile common rules to close loopholes used by global tech giants to reduce their corporate taxes. Multinationals face criticism for cutting their tax bills by booking profits in low-tax countries regardless of the location of the end customer. Such practices are seen by many as unfair.
The new rules would mean higher tax burdens for large multinational firms but would also make it harder for countries like Ireland to attract foreign direct investment with the promise of ultra-low corporate tax rates.
ICRICT welcomes the UN “Financing for Sustainable Development Report 2019” finding that a failure to reshape both national and international financial systems will result in the failure of the international community to deliver the 2030 Agenda for Sustainable Development, including eliminating extreme poverty and combating climate change. One of the most important conclusions of the UN’s report is that “Tax revenues are insufficient, and tax rules are inadequate given digitalization” and “small and poor countries are not adequately included in international tax architecture reform efforts”.
ICRICT held a conference in New York in September of 2018 to discuss a roadmap to a GAR, as described in this declarationpublished on 25 March 2019. Based on these initial steps, ICRICT, the World Inequality Lab project, Tax Justice Network, and Transparency International are co-hosting a workshop to develop the framework for a Global Asset Registry in Paris on July 1-2.
The organisers wish to invite original, high-quality papers for presentation.
The use of offshore structures allows not only the real ownership of wealth to remain hidden, but also its location and perhaps its very existence. This same secrecy also creates fertile ground for tax evasion, avoidance, and for financial crimes.