New global rules on firms’ tax disclosure urged by economists

Source: BBC

The BBC have reported that ”new global rules forcing companies to report taxable activities country-by-country publicly have been called for by a group of 300 prominent economists.”

”In a letter to world leaders, the group urges the UK to “take a lead” in the push for more tax transparency. Poor countries are the biggest losers from tax havens, they claim.”

Furthermore, ”the letter comes ahead of the UK government’s anti-corruption summit on Thursday, which politicians from 40 countries as well as World Bank and IMF representatives are expected to attend.”

Who are these Economists?

”The economists – who include almost 50 professors from British universities – argue the UK’s position as summit host as well as its sovereignty over what it says is a third of the world’s tax havens makes it “uniquely placed” to take the lead.”

What are these new tax disclosures? 

One of the signatories, the economist Dr Ha-Joon Chang of the University of Cambridge, told the BBC that he signed the letter because he shared “the view that tax havens serve no useful purpose”.

Dr Chang said: “These tax havens basically allow companies and certain individuals to free-ride on the rest of humanity.”

“These companies and people make money in one country by using workers educated with public money, using roads, ports and other infrastructure paid for by the taxpayers of that country and moving the money to another country in a shell company which doesn’t really do any business there.”

What’s your view on this newly proposed Tax regime?

Will it be useful for the global economy? Will it create a better system of taxation? Will it potentially decrease the levels of fraud?

Comment below your views on this Tax proposal below

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