ࡱ> xw.(  / 0LDArialԖe0Ԗ0llv-a0 B .  @n?" dd@  @@`` ,$X:      0AA@waʚ;ʚ;g4EdEd -a0ppp@ <4dddd8))0lv <4!d!d8K*0l80___PPT10 ?B, .UN--Geneva, 23-jul-2007Of =RTax Havens--The Need for Concerted Action)>TAX HAVENS: THE NEED FOR CONCERTED ACTION Luis Eduardo Escobar2?)(.* 4 4 4jChilean Representative to the Technical Group of ACTION AGAINST HUNGER AND POVERTY GENEVA, JULY 23, 20078kZ1" 4 4 4 4 4 4 4  4 4 4 4 49 4  Basic facts:   . 4 4 4Oxfam estimates that LDCs lose about US$50 billion through capital flight and tax havens. For the U.S. the IRS has estimated that much of the tax shortfall of US$300 billion a year is generated through tax havens. H 4 4  4 4 4 4 4 4 4 4 4 4 4 4 4  4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4  4  4 4 4 4 4 4 4 4 4 4 4 4  4 4 4 4 4 4 4 4 4 4 4 4  4 4 4 4 4 4 4 4  Therefore,   "  4 4Reducing tax evasion is an international  good in the sense that: tax evasion reduces the progressiveness of the tax system Non-mobile tax payers are burdened with higher taxes than they would otherwise&FF 4 4 4 4 4 4 4 4 4 4  4 4 4 4 4 4 4 4 4 4 4 4 4  4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4  4International tax actions: V  4 4 4 4 4 4The OECD has established four criteria to define a  harmful tax practice : Low or zero tax rates Separate tax systems for residents and non-residents Lack of transparency regarding ownership and transactions Unwillingness to share information&KK" 4  4  4 4 4 4 4 4 4  4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4  4 4 4 4  4 4 4 4 4 4  4 4  4 4  4 4 4 4  4 4  4 4 4 4 4 4  4 Limitations of OECD actions J  4 4 4 4 4 % Non OECD countries have greater difficulties in obtaining collaboration. % Collective action is required @qB K B    4  4 4 4 4 4 4  4 4  4 4  4 4  4 4 4 4 4 4 4 4(Possible elements for collective action:))  4 4 4 4 4 4  4 4 4 44Compensate tax havens for lost revenues Switzerland has such an arrangement with the European Union Compensation would be a Pareto improvement in the sense that  home countries could be better off without deteriorating the position of tax havens The private sector must be engaged.:(<(<  4 4 4 4 4 4 4 4 4 4 4 4  4 4 4 4 4 4  4 4 4 4 4 4 4 4 4 4  4 4 4 4 4 4  4 4 4 4 4 4 4 4  4 4 4 4 4 4 4 4 4 4  4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4  Criteria for collective action d 4 4 4 4  4 4 4GA multilateral approach should consider at least four criteria: Establish a level playing field of rules and penalties (with due regard for conditions in LDCs) Decisions should be adopted in a universal forum Maintain balance between competing considerations (privacy v tax authorities) Regulations should balance cost/benefits,@ZZ@| 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4  4 4 4 4 4 4 4 4 4 4 4 4  4 4 4 4 4 4 4 4 4 4  4 4 4 4  4 4 4 4 4 4 4  4 4 4  4 4 4 4 4 4 4 4  4 4  4 4 4  4 4 4 4 !A number of steps could be taken:""  4 4 4 4 4 4 4 4 4 4 4At the government level: adopting FATF/GAFI standards for financial system operations introducing minimum taxes on transnational payments of interest and dividends (e.g., Chile) adopting conventions such as the Code of Conduct on Combating Capital Flight and Tax Evasion and Avoidance4J 4 4 4 4  4 4 4 4 4  4  4 4 4 4  4 4 4 4  4 4  4 4 4 4 4 4 4 4  4 4 4 4 4 4 4 4 4 4  4 4 4  4 4 4  4 4 4 4 4 4 4 4 4 4 4 4 4 4  4  4 4 4 4 4 4 4 4 4 4 4  4 4  /  0` 33` Sf3f` 33g` f` www3PP` ZXdbmo` \ғ3y`Ӣ` 3f3ff` 3f3FKf` hk]wwwfܹ` ff>>\`Y{ff` R>&- {p_/̴>?" dd@,|?" dd@   " @ ` n?" dd@   @@``PR    @ ` ` p>>^N0 f(    6  `}  T Click to edit Master title style! !  0(  `  RClick to edit Master text styles Second level Third level Fourth level Fifth level!     S  0Ã ^ `  >*  0ȃ ^   @*  0p̓ ^ `  @*H  0޽h ? f80___PPT10.4@J Default Design0 zr@8 (  8 8 0( P   ( P*   8 0(    ( R*  d 8 c $ ?  ( 8 0$(  0 ( RClick to edit Master text styles Second level Third level Fourth level Fifth level!     S 8 6( _P  ( P*   8 6( _  ( R*  H 8 0޽h ? 3380___PPT10.4 f P48(  4 4 0 ( P   ( >*  4 0(    ( @*  4 6P( _P  ( >*  4 6( _  ( @* H 4 0޽h ? 3380___PPT10.4 0^N0 0$(  r  S \|  r  S 0 P0  H  0޽h ? 33___PPT10i.4+D=' 4= @B +0^N0B, .UN--Geneva, 23-jul-2007 aY` (   /  c $'<$0   Five key elements J 4 4 4 4 4  c $ NP<$0  Taxes are the basis on which countries finance investment and social spending. Developing and Emerging economies have weaker and more volatile tax bases. They also have limited access to counter cyclical external financing 4 4 4 4 4 4 4 4 4 4  4 4 4 4  4 4 4 4 4 4  4 4 4 4 4 4  4 4 4 4 4 4 4 4 4 4 4  4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4  4H  0޽h ? 33  ___PPT10 ..4pud+ˠD ' 4= @B D ' = @BA?%,( < +O%,( < +D' =%(%(D' =%(D8' =A@BB BB0B%(D' =1:Bvisible*o3>+#.<* %(D' =-g6B fade*<3<* D' =%(D' =%(D8' =A@BB BB0B%(D' =1:Bvisible*o3>+#.<* O%(D' =-g6B fade*<3<* OD' =%(D' =%(D8' =A@BB BB0B%(D' =1:Bvisible*o3>+#.<* P%(D' =-g6B fade*<3<* PD' =%(D' =%(D8' =A@BB BB0B%(D' =1:Bvisible*o3>+#.<* %(D' =-g6B fade*<3<* +p+0+ 0 ++0+ 0 +{ 0^N0 @(  @ @ c ${P <$0  MThe problem of tax evasion and tax elusion is not small and affects developed and developing countries. The problem is more important for LDCs due to the limited tax base.  4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4  4 4 4 4  4 4  4 4 4 4 4 4 4 4  4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4H @ 0޽h ? f~v___PPT10V..zxE+[W_D' 4= @B D' = @BA?%,( < +O%,( < +D' =%(D' =%(D8' =A@BB BB0B%(D' =1:Bvisible*o3>+#.<*@h%(D' =-g6B fade*<3<*@hD' =%(D' =%(D8' =A@BB BB0B%(D' =1:Bvisible*o3>+#.<*@i%(D' =-g6B fade*<3<*@i+8+0+@0 +"  0^N0 p|(    S ` `<$0     S ``0<$0  H  0޽h ? 33  ___PPT10 ..4P?+ˠD ' 4= @B D ' = @BA?%,( < +O%,( < +D' =%(%(D' =%(D8' =A@BB BB0B%(D' =1:Bvisible*o3>+#.<*%(D' =-g6B fade*<3<*D' =%(D' =%(D8' =A@BB BB0B%(D' =1:Bvisible*o3>+#.<*Z%(D' =-g6B fade*<3<*ZD' =%(D' =%(D8' =A@BB BB0B%(D' =1:Bvisible*o3>+#.<*[%(D' =-g6B fade*<3<*[+p+0+0 ++0+0 +0^N0 X(  X X 6t.  " Some US$ 6 trillion are said to be deposited in tax havens. " This compares with total transborder transactions in 2005 estimated at about US$ 6 trillion (McKinsey). " The Caribbean and Channel Islands jurisdictions represent an estimated 22% of the total. L B>BiBZ 4 4 4 4 4 4 4 4 4 4 4  4 4 4 4 4 4 4  4 4 4  4 4  4  4  4 4 4 4 4 4 4 4 4 4 4 4 4 4  4 4 4 4 4 4 4 4  4 4  4 4 4 4  4 4 4 4 4  4H X 0޽h ? f___PPT10i.e+D=' 4= @B + 0^N0 |(    S  `<$0     S @ `<$0  H  0޽h ? 33V N ___PPT10. ..4+ D ' 4= @B DA ' = @BA?%,( < +O%,( < +D' =%(%(D' =%(D8' =A@BB BB0B%(D' =1:Bvisible*o3>+#.<*%(D' =-g6B fade*<3<*Dh' =%(D' =%(D8' =A@BB BB0B%(D' =1:Bvisible*o3>+#.<*E%(D' =-g6B fade*<3<*ED8' =A@BB BB0B%(D' =1:Bvisible*o3>+#.<*F%(D' =-g6B fade*<3<*FD8' =A@BB BB0B%(D' =1:Bvisible*o3>+#.<*%(D' =-g6B fade*<3<*+p+0+0 ++0+0 + 0^N0 $(  r  S  `   r  S \`  H  0޽h ? 33___PPT10i.4y@+D=' 4= @B + 0^N0 L0(  Lx L c $H( `  ( x L c $ (` ( H L 0޽h ? 33___PPT10i.4y@+D=' 4= @B +R 0^N0  |(    S (  `<$0  (   S ( `<$0 ( H  0޽h ? 33___PPT10..4 U+ D&' 4= @B D' = @BA?%,( < +O%,( < +D' =%(%(D' =%(D8' =A@BB BB0B%(D' =1:Bvisible*o3>+#.<*%(D' =-g6B fade*<3<*D(' =%(D' =%(D8' =A@BB BB0B%(D' =1:Bvisible*o3>+#.<*(%(D' =-g6B fade*<3<*(D8' =A@BB BB0B%(D' =1:Bvisible*o3>+#.<*(d%(D' =-g6B fade*<3<*(dD' =%(D' =%(D8' =A@BB BB0B%(D' =1:Bvisible*o3>+#.<*d%(D' =-g6B fade*<3<*dD' =%(D' =%(D8' =A@BB BB0B%(D' =1:Bvisible*o3>+#.<*%(D' =-g6B fade*<3<*+p+0+0 ++0+0 + 0^N0  4(     c $?(@ ` ( Reducing tax evasion and elusion is a collective endeavour:  No country can successfully & counter tax evasion if others facilitate its commission. (Richard Hecklinger, OECD) " The subject of tax havens has to be dealt with in a multilateral context, as agreed in the Monterrey Consensus. Strengthening the UN Tax Committee was an important step in the right direction.F<PPSPB2 4 4 4 4 4 4 4 4 4 4 4 4  4 4  4 4  4 4 4 4 4 4 4 4 4 4 4 4  4 4 4 4  4  4  4  4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4  4  4 4  4 4 4 4 4 4  4 4 4 4 4 4  4 4 4 4 4 4 4 4  4 4H  0޽h ? 33___PPT10i.4+D=' 4= @B + 0^N0 $$(  $r $ S  a(P `  ( r $ S a( ` ( H $ 0޽h ? 33___PPT10i.4D+D=' 4= @B + 0^N0 ($(  (r ( S P `}   r ( S 8 `  H ( 0޽h ? 33___PPT10i.4@{f+D=' 4= @B +0^N0  P(  P\ P c $y0  ( At the private sector level: improving accounting information by showing income generated in each tax jurisdiction (IASB), as suggested by Tax Justice Network. introducing voluntary tax certification mechanisms (SRE), as suggested by the Chilean IRS. ( 4 4 4 4 4 4 4 4  4 4  4 4  4 4 4 4 4 4  4 4 4 4 4 4  4  4  4 4 4 4 4 4 4 4  4 4  4 4 4 4  4 4  4  4  4 4 4 4 4 4 4H P 0޽h ? f___PPT10i.P%p+D=' (= @B +0^N0 ,Q(  , , c $(@ `c  ( ! THANK YOU Luis Eduardo Escobar: ( (.  4 4 4H , 0޽h ? 33___PPT10i.4`y!+D=' (= @B + 0 H(  HX H C 8   ( H S (8 0  (  H H 0޽h ? 3380___PPT10.Pu TrP0.BqEf{H2ܶ>8JZϰsOh+'0@ `h  , 8 DPXTACTION AGAINST HUNGER AND POVERTY GT-7 MEETING Santiago, Chile January 10-11, 2007Luis Eduardo Escobar51Թ22Microsoft Office PowerPoint@'@ \ո4@d<G g  (  y--$xx--'@Arial-. f'2 TAX HAVENS: THE NEED ."SystemH*-@Arial-. f%2 )FOR CONCERTED ACTION.-@Arial-. f 2 3$Luis.-@Arial-. f2 38Eduardo Escobar.-@Arial-. f2 I,Chilean.-@Arial-. f2 IGRepresentative.-@Arial-. f 2 R)to.-@Arial-. f 2 R1the.-@Arial-. f2 R= Technicala.-@Arial-. f2 R^Groupa.-@Arial-. f 2 Rsof.-@Arial-. (2 \#ACTION AGAINST HUNGER .-@Arial-. 2 c8 AND POVERTYi.-@Arial-. '2 i9GENEVA, JULY 23, 2007 .-՜.+,0    On-screen Show Self6G ArialDefault Design?TAX HAVENS: THE NEED FOR CONCERTED ACTION Luis Eduardo EscobarFive key elementsSlide 3 Basic facts:Slide 5 Therefore,International tax actions:Limitations of OECD actions)Possible elements for collective action: Slide 10Criteria for collective action"A number of steps could be taken: Slide 13 Slide 14  Fonts UsedDesign Template Slide Titles&_51ԹUnited Nations  !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^`abcdefhijklmnpqrstuvyRoot EntrydO)Current UseroSummaryInformation(_PowerPoint Document(6DocumentSummaryInformation8g