One of the key targets of the larger western governments during the recession has been the tax havens, for their alleged encouragement of tax evasion. There has been unprecedented pressure for them to 'open the books'.
While ACCA strongly believes in transparency, along with the right of governments to pursue tax evaders – and accepts that some offshore centres may not have helped themselves – there is a view that governments who cry 'foul' are operating double standards.
In ACCA's new policy paper Competition or Coordination? Reassessing Tax in a Global Environment, we argue there is a strong suspicion that the attack by leading nations on tax havens is driven by a dislike of the downward pressure on tax rates that they engender, along with an attempt in some cases to distract attention from the underlying reasons for their budget deficits.
Tax havens need to volunteer as much information as possible but, in return, the rest of the global economy needs to accept these jurisdictions fully and not act out of pique at efficient low-tax economies.
Your views on this are welcome, as ever.
Recent Comments