Davos 2019 - Rethinking Taxes: Creating a Fair and Balanced System

TL;DR

Leaders in the tax world discuss the need for international collaboration to address tax avoidance schemes and the challenges of implementing a global minimum tax rate for corporations.

Transcript

avoidance and we're very excited I'm talking about these key issues the world economy so we are joined with today by some rock stars of the tax world on how Korea the head of the OECD which has just put forward some really interesting amazing work on the base tax next to him probably needs no introduction to this room Minister Pasha Donohue of Irel... Read More

Key Insights

• 🚕 The panel recognizes the need for international collaboration to address tax avoidance schemes and harmful tax competition.
• 🌍 The debate revolves around finding a balance between national sovereignty and international tax standards.
• 🌐 The treatment of the digital economy and the concept of a digital permanent establishment create challenges in global taxation.
• 💦 Progress has been made in fighting tax evasion, but there is still work to be done to ensure fair taxation.

Questions & Answers

Q: Why is Ireland opposed to the proposal for an international minimum tax rate for corporations?

Minister Donohue argues that setting tax rates is an important aspect of national sovereignty and believes that smaller countries should have the opportunity to be competitive in taxation. He supports collaborating on international tax standards but opposes minimum tax rates across the world.

Q: What is the current progress in addressing tax avoidance schemes?

The panel acknowledges the progress made in fighting tax evasion, including the elimination of harmful tax regimes and the exchange of information on tax rulings. They recognize the need for balance and fair treatment of companies in terms of taxation.

Q: How has the global tax landscape changed in recent years?

The panel highlights the significant changes in corporate taxation, such as the BEPS process and US tax reform. They emphasize the need for recognition and further understanding of the impact of these changes on global taxation.

Q: Is there a concern about a race to the bottom in corporate taxation rates?

The panel members acknowledge the concern about a race to the bottom, but they believe that the magnitude of the reduction in tax rates will not be as significant as predicted. They stress the importance of maintaining competitive tax rates while meeting new global standards.

Summary & Key Takeaways

• The panel discusses the need for global collaboration to combat tax avoidance schemes.

• Chancellor Merkel's proposal for an international minimum tax rate for corporations is met with opposition from Minister Donohue, who emphasizes the importance of national sovereignty.

• The debate revolves around the treatment of the digital economy and the concept of a digital permanent establishment.

• The panelists acknowledge the progress made in fighting tax evasion but emphasize the need to continue addressing harmful tax practices.