In its never-ending quest to implement a statist version of globalism, the Organisation for Economic Co-operation and Development (OECD) has recommended that Chile undertake a series of interventionist reforms to address supposed problems in its economy.
According to the 2018 Economic Survey of Chile, Chile has lingering levels of inequality that must be taken care of. Rather than focusing on reducing overall poverty – one of Chile’s success stories over the past 40 years – the OECD instead decides to obsess over Chile’s inequality “crisis” that must be addressed by “increasing social spending to reduce inequality.” In other words, the Paris-based bureaucracy effectively wants people to believe that Chile has a problem because some people have become richer faster than others have become richer. And because of this ideological approach, the OECD is drawn to redistributionist policies. For instance, it asserts that equity “would rise with higher social spending and a reform of the pension system that currently leave many with very low entitlements.” While Chile is not as developed as some of its OECD counterparts, Chilean policymakers should look at arguments for more interventionism in its economy with a skeptical eye. www.caymanfinancialreview.com/2018/04/19/chile-should-give-the-oecd-the-cold-shoulder/...
OtherEconomyChile should give the OECD the cold shoulderBy José Niño April 19, 2018 Share on Facebook Tweet on Twitter In its never-ending quest to implement a statist version of globalism, the Organisation for Economic Co-operation and Development (OECD) has recommended that Chile undertake a ser...
Journalists and offshore representatives clash at OffshoreAlert conference
The fight between offshore law firm Appleby and the International Consortium of Investigative Journalists over the publication of the firm’s client data in the international press continued at the annual OffshoreAlert conference in Miami on Monday.
There were no Appleby representatives present in a panel discussion of what the ICIJ dubbed the “Paradise Papers” but the firm’s Global Managing Partner Michael O’Connell sent a statement to conference organizer David Marchant in which he accused journalists of publishing stolen, privileged property and breaching client confidentiality without justification.
The media, he said, continue “to appear to give no consideration as to whether the documents give rise to any matter of public interest or that they raise matters of sufficient importance to justify the major violation of confidence, privilege and privacy.”
Home Business Journalists and offshore representatives clash at OffshoreAlert conferenceBusinessLocalJournalists and offshore representatives clash at OffshoreAlert conferenceBy Michael Klein - April 17, 2018Facebook Twitter Google+ Pinterest WhatsApp David Marchant, founder and CEO of OffshoreAlert...
Richard Burton, WPOS Speaker. The 115th Congress is seriously considering imposing a beneficial ownership reporting regime on American businesses and other entities, including charities and religious congregations. Two House subcommittee chairmen recently released a discussion draft of legislation and legislation has been introduced in both the House and the Senate. Hearings have been held in both houses.
Under pressure from the Organisation for Economic Co-operation and Development’s Financial Action Task Force (FATF) and the EU, most OECD countries are moving to either a financial institution customer due diligence requirement, similar to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) Customer Due Diligence (CDD) rule discussed below, or a beneficial ownership reporting regime or sometimes both. As with anti-money laundering rules generally, there is little information available as to their effectiveness. Yet politicians continue to blithely enact ever more burdensome and intrusive rules.
The three proposals share three salient characteristics. First, they will impose a large compliance burden of the private sector, primarily on small businesses, charities and religious organizations. Second, they will create hundreds of thousands, and potentially more than a million, inadvertent felons out of otherwise law-abiding citizens. Third, they will do virtually nothing to achieve their stated aim of protecting society from terrorism or other forms of illicit finance. The proposals make lawful avoidance and unlawful evasion quite easy.
Furthermore, the creation of this expensive and socially damaging reporting edifice is unnecessary. The vast majority of the information that the proposed beneficial ownership reporting regime would obtain is already provided to the Internal Revenue Service (IRS). Simply creating a database based on information provided to the IRS and allowing the IRS to share this information with FinCEN would better meet the needs of law enforcement than would the proposed beneficial ownership reporting regimes. www.caymanfinancialreview.com/2018/04/19/beneficial-ownership-reporting-in-the-united-states/...
Home Sectors Regulation/Compliance Beneficial ownership reporting in the United States?SectorsRegulation/ComplianceBeneficial ownership reporting in the United States?By David R. Burton April 19, 2018 Share on Facebook Tweet on Twitter The 115th Congress is seriously considering imposing a beneficia...
EU Tax Working Group To Discuss Digital Tax, MNE Tax Issues
The EU's High Level Working Party (Taxation) will discuss international tax reform at its meeting today April 18.
According to its agenda, released ahead of the meeting, the working party will discuss the outcome of meetings of the OECD Task Force on the Digital Economy and the G20 meeting of finance ministers, which took place in March, and the OECD Forum of Harmful Tax Practices, which met for three days ending April 6, 2018.
Specifically, it will discuss proposals recently put forward by the EU Commission and the OECD for an interim digital tax measure – a tax on revenues from the digital economy that would otherwise go untaxed, where companies derive revenue from online users' data or activities – and their longer-term proposal for a new digital permanent establishment rule.
Next, it will discuss the EU's common corporate tax base proposal, including evaluating its potential impact on national tax revenues. This project is intended to harmonize EU member states' corporate tax regimes to enable taxation of multinational groups under a formulary apportionment approach, under which tax would be levied, and the revenues allocated to member states, based upon objective factors, such as sales and employment levels in each state. The EU Presidency is to present a progress update.
It will also discuss the state of play on the financial transaction tax, which appears to have been a non-starter for the EU. Under the proposed FTT directive drafted by the Commission in 2011, the tax would be imposed on all transactions in financial instruments, with the exchange of shares and bonds taxed at a rate of 0.1 percent and derivative contracts at a rate of 0.01 percent.
However, the participating member states (originally just 11 of the member states) have found it very difficult to arrive at a consensus on the technical details of the new directive, particularly around the issues of how the tax will apply to derivative trades, and to transactions made by pensions funds.
The Working Party is expected to also hold a "strategic discussion" on taxation of the financial sector, including with regards to value-added tax.
Finally, it will discuss tax reform options and proposals for future discussion. Tax news ...
OECD Urges International Tax Reform Of Savings, Investments by Ulrika Lomas, Tax-News, Brussels 13 April 2018
"While countries do not necessarily need to tax savings more, there is a lot of room to improve the way countries tax savings," according to Pascal Saint-Amans, Director of the OECD Centre for Tax Policy and Administration.
Launching two new reports on April 12, he said: "There is also a very strong case to be made for addressing income and wealth inequality through the tax system, notably by ensuring effective taxation of capital. Governments have an opportunity to increase both the efficiency and fairness of their tax systems, and these reports outline concrete measures to help achieve this."
The reports – Taxation of Household Savings and The Role and Design of Net Wealth Taxes - say that taxes are among the most effective tools governments have for reducing inequalities and bringing about more inclusive growth. Taxation of Household Savings provides a detailed review of the way savings are taxed in the 35 OECD countries and five key partner countries (Argentina, Bulgaria, Colombia, Lithuania and South Africa). It finds large differences within countries in the tax treatment of a range of assets, such as bank accounts, bonds, shares, private pensions, and housing, and points out that tax rules – rather than pre-tax rates of return – are likely driving some savings decisions.
According to the OECD report, differences in tax treatment of certain types of savings often favor wealthier taxpayers. For instance, poorer taxpayers tend to hold a larger share of their wealth in relatively high-taxed bank accounts than wealthier taxpayers, who tend to hold a greater share of their wealth in investment funds, pension funds, and shares, which are often taxed at lower rates.
The OECD report puts forward a range of opportunities for greater tax neutrality across different types of savings to foster more inclusive growth. The report also finds that opportunities may exist for some countries to increase progressivity in their taxation of savings as a result of the recent move towards the automatic exchange of financial account information between tax administrations.
"This ground-breaking change in the international tax environment is likely to make it harder in years to come for taxpayers to evade tax by hiding income and wealth offshore," the OECD said, "presenting a particular opportunity for countries that previously moved away from progressive taxation of capital income to reintroduce a degree of tax progressivity."
The second report – The Role and Design of Net Wealth Taxes – examines the use of net wealth taxes, both currently and historically, across the OECD. It assesses the case for and against the use of net wealth taxes to raise revenue and reduce inequality, but does not call for their introduction.
The report suggests that there is little need for net wealth taxes in countries with broad-based personal capital income taxes, including capital gains taxes, and well-designed inheritance and gift taxes. It finds there may be scope for such taxes in countries where the taxation of capital income is low or where inheritance taxes are not levied. ...