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.
The International Monetary Fund is releasing a paper this Sunday, calling for an overhaul of the international tax systems. This paper is a timely and much needed intervention as the OECD holds a public consultation in Paris this week on taxation of the digital economy. ICRICT commissioner Edmund Valpy Fitzgerald has issued a comment on the paper.
In recent years, women’s organizations, movements and advocates around the world have been outspoken about the links between tax evasion and tax avoidance and gender equality. When corporations do not pay their fair share of taxes, there is less money to invest in public services, sustainable infrastructure and social protection, which are the key drivers for gender equality.
ICRICT welcomes the publication by the OECD of a “Policy Note - Addressing the Tax Challenges of the Digitalisation of the Economy”. This note shows clearly that the OECD is finally ready to engage on real reforms that ICRICT has constantly advocated for, considering, notably, a move beyondthe arm’s length principle, the principle underpinning the current international tax architecture. This was a taboo until now.
The Base Erosion and Profit Shifting (“BEPS”) initiative, launched by the OECD in 2015 has resulted in helpful solutions for some of the most shocking tax avoidance mechanisms. But it has failed to address the core problem: companies are still allowed to move their profits wherever they want and to take advantage of very low tax jurisdictions.
ICRICT thinks the OECD BEPS process has achieved what it could, within the constraints of politics driven by big corporations. It is time now to move away from the transfer pricing system towards a fairer and more effective system. Read more about our critics and proposals in this a new paper.
La conférence sera animée par Adrienne Brotons, membre de l’Observatoire de l’économie de la Fondation Jean-Jaurès. Elle aura lieu dans les locaux de la Fondation, 12 Cité de Malesherbes, 75009, Paris.
A group of progressive Europeans led by the economist and ICRICT commissioner Thomas Piketty has drawn up a bold new blueprint for a fairer Europe to address the division, disenchantment, inequality and rightwing populism sweeping the continent. ICRICT commissioner Gabriel Zucman also signed it.
Andrés Manuel López Obrador, 65, known by his initials AMLO, took office as potentially the most powerful Mexican president in decades. The far-right Jair Bolsonaro will do so a month later, on January 1, 2019.
The differences between the two are profound, in terms of their origins, political trajectories, ideologies, and styles. But in these turbulent times of absolute failure of Latin American states, the main battleground will be that of economic proposals, in two countries that are world champions of inequality.
Read ICRICT’s Ricardo Martner analysis in English, Spanish and French.
The Financial Transparency Coalition (FTC) with partners Freidrich Ebert Stiftung (FES), and ICRICT, are organising two important events: a Pan-Continental Southern Dialogue on Illicit Financial Flows and the Pan-Continental Forum on the Future of Taxation of Multinational Corporations, November 21st to 23rd 2018, in Nairobi, Kenya.
With the participation of five ICRICT commissioners: Edmund Valpy Fitzgerald, Kim Jacinto Henares, Rev. Suzanne Matale, Ricardo Martner and Wayne Swan.
A year on from the Paradise Papers, the world has not made sufficient progress to tackle the secrecy that facilitates the hiding of wealth in tax havens. With 10% of global GDP estimated to be hidden in tax havens, and inequality rising both in developed and developing countries, the lack of progress is worrying