{"id":45457,"date":"2019-06-28T09:06:08","date_gmt":"2019-06-28T08:06:08","guid":{"rendered":"https:\/\/www.taxresearch.org.uk\/Blog\/?p=45457"},"modified":"2019-06-28T09:06:08","modified_gmt":"2019-06-28T08:06:08","slug":"the-corporate-tax-haven-index-solving-the-worlds-broken-tax-system","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2019\/06\/28\/the-corporate-tax-haven-index-solving-the-worlds-broken-tax-system\/","title":{"rendered":"The Corporate Tax Haven Index: solving the world\u00e2\u20ac\u2122s broken tax system"},"content":{"rendered":"

In this month\u2019s Tax Justice Network podcast the TJN\u00a0 looks at the new\u00a0Corporate Tax Haven Index<\/a>. What does it tell us about the global economy and the international tax system? And how can we fix it? We also look at how India is pushing the G20 into action on global tax rules \u2014 if they don\u2019t act it will implement its own rules.<\/p>\n

The Corporate Tax Haven Index provides one of those really rare glimpses of what actually happens underneath the bonnet of the global economy. It tells several disturbing stories\u2026in what we can only describe as a full frontal assault on the national tax sovereignty of every country on the planet. That\u2019s what they\u2019re doing. They\u2019re attacking the tax regimes of other countries. What it reveals is a really disturbing picture of international failure. We see the powerful European countries and especially Britain lying behind their clusters of tax havens and they have wrecked economies across the world and are now threatening social stability and democracy across the world.<\/p>\n

But when countries like India say, no, that doesn\u2019t work for us, we\u2019re going our own way, then it gets very serious indeed. And the G20 simply cannot afford to ignore this any longer. So the road is open for the next steps. And of course the next steps are going to take us in the direction the Tax Justice Network has always been talking about. And that is in the direction of proper apportionment of profits to the countries where the profits are aligned with the economic substance. In other words, we\u2019re moving towards unitary taxation and formula apportionment\u2026And I think we should all welcome the opportunity now to create a framework for taxing multinational companies that suits the entire world, not just the most powerful countries in the world.<\/p>\n

John Christensen, Tax Justice Network<\/cite><\/p>\n

I think it is important to point out that the term of tax haven has done us a big disservice for many decades now. That is used instead of claiming what we think is much more accurate nowadays, instead of claiming a\u00a0spectrum\u00a0<\/em>of secrecy, a\u00a0spectrum\u00a0<\/em>of tax haven-ness\u00a0<\/em>each country now embodies. We have to be more specific than just tax havens, there are so many dimensions to this and that is why we prefer to speak on the one hand about secrecy jurisdictions\u2026and the other element that we need to complement this terminology is the corporate tax haven, which designates those places that play a more important role for multinationals in shifting their profits across borders. And this is why we have complemented the\u00a0Financial Secrecy Index<\/a>\u00a0with the\u00a0Corporate Tax Haven Index<\/a>. [They] paint a different picture, much more nuanced where we can see that many countries nowadays have joined the bandwagon, and have joined the race to the bottom<\/p>\n

Markus Meinzer, director of the Corporate Tax Haven Index and Financial Secrecy Index research teams<\/cite><\/p><\/blockquote>\n

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