Tax

Sven Giegold: Global tax cooperation remains crucial

Giegold is a member of a parliamentary delegation which has just concluded a fact finding trip to Washington on what the US is doing to combat financial crime.

The delegation from the economic and monetary affairs committee was in Washington and New York to meet representatives from the US Treasury, the Institute of International Bankers (IIB) and the Federal Reserve Board (FRB).

Read More...

ITEP Report: Understanding and Fixing the New International Corporate Tax System

The Tax Cuts and Jobs Act (TCJA) radically changed the international tax system. It slashed taxes on corporate income, both domestic and foreign. It encouraged U.S. multinational corporations to shift jobs, profits, and tangible property abroad, and keep intangibles home. This report describes the new international tax system—and its many gaps—and also provides a road map for how to fix these gaps and surveys recent legislative approaches.

Read More...

Just the FACTs: July 18, 2018

After 2 years of bipartisan negotiations, without warning or fanfare, the leadership of the U.S. House Financial Services Committee stripped beneficial ownership provisions out of a bipartisan anti-money laundering bill and planned a Committee vote.

A decision was made to drop beneficial ownership because it was thought to be controversial and a stripped down bill would “pass easily.” However, as FACT’s executive director describes in this op-ed in the American Banker, that was simply not the case.

Read More...

Do the B Team’s Tax Principles Raise or Lower the Bar? A Debate with TJN

By Adam Kanzer

On February 1, the B Team published “A New Bar for Responsible Tax: The B Team Responsible Tax Principles,” with the endorsement of nine corporations (Allianz, BHP, Maersk, Natura, Repsol, Safaricom, Shell, Unilever and Vodafone). I was privileged to serve as a member of the Company Working Group that oversaw the development of the Principles over the course of 2017, representing an investor perspective.

After several years of engagement with a variety of corporations on these issues on behalf of Domini Impact Investments, I am optimistic that the B Team’s work establishes a promising platform for meaningful dialogue with corporations about their tax practices. The Principles are not perfect, but I believe they represent an important step forward.

I was therefore very disappointed to see TJN’s critique of the Principles, The B-Team: Lowering the bar for tax transparency? I reached out to Alex Cobham, Chief Executive of Tax Justice Network, and both of us felt that our exchange would be worth sharing, as other organizations evaluate the B Team principles for themselves.

Read More...

New Legislation Would Close Significant Offshore Loopholes in the Tax Cuts and Jobs Act

By Richard Phillips

The Tax Cuts and Jobs Act (TCJA) was a historic opportunity to reform the international tax code and finally put an end to the rampant shell games played by U.S. companies to avoid taxes. Unfortunately, the TCJA will likely increase offshore tax avoidance and increase the incentives for companies to move jobs and operations offshore. As a new ITEP report explains, TCJA creates many new breaks and loopholes for offshore corporate profits, and while several different bills have been introduced to close them, no one bill addresses all of them.

Read More...

Facebook Facing Shareholder Scrutiny for its Offshore Tax Avoidance

By Richard Phillips

In recent months, Facebook CEO Mark Zuckerberg has been hauled before lawmakers in the United States and the European Union to respond to criticism of the company’s privacy policies and sharing of user data. Now the company’s dodgy tax practices are facing increased scrutiny from an even more important source: some of its own shareholders. In advance of its annual shareholders meeting on May 31, Facebook was confronted with a shareholder resolution (Proposal 8 on pg. 59) asking it to endorse a set of principles to guide its tax policy and to ensure that such principles consider the impact of its tax strategies on local economies and public services. The resolution is a signal from a group of concerned shareholders that Facebook’s tax avoidance hurts its reputation, the communities in which it operates, and creates financial risks to the company’s shareholders.

Read More...