Tag: tax (page 1 of 2)

Global Tax Evasion: good news and bad news

If – global – governance wants and needs new resources: tackle global tax evasion!

Read Jayathi Ghosh’s article

A simplified Approach for Taxing Multinationals

This paper puts forward an alternative to the proposed multilateral convention under Pillar One of the BEPS project, by building on and going beyond the progress made so far. A new direction was signalled in 2019 by the G-24 paper proposing a taxable nexus based on significant economic presence, combined with fractional apportionment. The resulting measures agreed under the two Pillars entail acceptance in principle of this approach, and also provide detailed technical standards for its implementation. These include: (i) a taxable nexus based on a quantitative threshold of sales revenues; (ii) a methodology for defining the global consolidated profits of MNEs for tax purposes, and (iii) detailed technical standards for defining and quantifying the factors that reflect the real activities of MNEs in a jurisdiction (sales, assets and employees).

Read the working paper of the South Centre

Should Billionaires face a Minimum Tax Rate?

Yes, says the newly created EU Tax Observatory

Billionaires should face a minimum tax rate, report says – BBC News

Tax the rich!

In an open letter to G20 leaders as they prepared to convene in New Delhi, India for their annual summit, U.S. Sen Bernie Sanders (I-Vt) joined economist Jayati Ghosh, Patriotic Millionaires chair Morris Pearl, philanthropist Abigail Disney, and more than 300 others in declaring that “we cannot allow extreme wealth to continue corroding our collective future.”

“Decades of falling taxes on the richest, based on the false promise that the wealth at the top would somehow benefit us all, has contributed to the rise in extreme inequality,” the Tuesday letter states. “Our political choices allow ultra-wealthy individuals to continue to use tax shelters and enjoy preferential treatment to the extent that, in most countries in the world, they pay lower tax rates than ordinary people.”

“At the same time, the world has seldom had more need for the richest to pay,” the letter continues, noting that global extreme poverty rose in 2020 for the first time in more than two decades as Covid-19 threw the world into economic chaos.

A real chance for international tax cooperation

After decades of resistance by rich nations, African governments successfully pushed for the United Nations to lead on international tax cooperation. All developing countries and fair-minded governments must rally behind this initiative.

Read Jomo Kwame Sundartam’s article

In favour of a UN Tax Convention

The Secretary-General of the United Nations (UN) has published an advanced unedited version of a game-changing report. It outlines the options for strengthening the inclusiveness and effectiveness of international tax cooperation and presents three possible roads ahead, all under the auspices of the UN. Eurodad welcomes this truly historic moment in international tax cooperation.

and also read Eurodad’s report on the same topic:

Wealth tax and wealth redistribution in Africa

Sub-Saharan Africa is one of the most unequal places in the world, with significant levels of social, gender, and income inequality. Several countries in the region have a tax structure that is heavily weighted towards consumption taxes, which can be regressive and inflict a significant burden on those with low and middle incomes. Implementing progressive tax systems, whereby those with higher earnings pay a larger share in taxes, is one way through which governments might optimize the impact of tax revenue on reducing inequality. The adoption of a wealth tax may facilitate wealth redistribution in Sub-Saharan African nations and could help bridge the inequality gap in the region. High statutory wealth tax rates of between 5-8% are needed in order to have an effective tax rate of 3-5%.

Read the paper by South Centre

The first trillionaire: no cause for celebration

I explained back then how tax policy was supercharging the accumulation of obscene fortunes in America. Policy makers, I noted, had lifted the lid on wealth accumulation by decreasing taxes on inheritances and income from capital. That policy failure would go on to become substantially worse in 2017 with the passage of the Tax Cuts and Jobs Act.

Others would see this same ominous trend. In an interview with CNBC, several experts recognized the distinct possibility the world would have its first trillionaire by 2039, the year CNBC would turn 50.

Read the article by ‘Veteran tax attorney Bob Lord, an Institute for Policy Studies associate fellow, is currently serving as a senior advisor on tax policy for Patriotic Millionaires.

Growing Support for a UN Convention on Tax

At the end of last month, the annual ECOSOC Special Meeting on Tax was held at the UN. This constituted the first intergovernmental debate on international tax matters following the historic approval of a new UN General Assembly resolution at the end of 2022. The resolution, which was adopted by consensus, includes the decision to “begin intergovernmental discussions in New York at United Nations Headquarters on ways to strengthen the inclusiveness and effectiveness of international tax cooperation”. The Africa Group, which had tabled the resolution, also called for the process to deliver a new UN Convention on Tax.

Article from Eurodad

Profits in tax havens!

Zucman and Wier published a new study on what multinational corporations did with their profits made outside their own country. In 2019 one trillion USDollars went to tax havens!

They also note that multinational profits grew faster than global profits!

Read the interesting study!

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