Davos 2017: Efforts to tackle tax avoidance on the agenda

At the World Economic Forum in Davos last week, the subject of tax was once again on the agenda. Whether it was Oxfam, the OECD or Theresa May, efforts to tackle tax avoidance were under scrutiny. With the UK wedded to having the lowest tax rate in the G20, and President Trump promising to dramatically cut US taxes, claims that there is a “race to the bottom” seem ever more believable. However, opinions remain divided as to whether this is a good or a bad thing.

The tax debate has come a long way in the last few years, but frustrations remain that what should be common ground around terminology and matters of fact gets muddied. In the long run, this is counter productive for all.

MEPs tell EU Commission to expand “blacklist” of states at risk of money laundering to include “tax havens”

Last week the European Parliament considered the European Commission's "blacklist" of countries deemed to be at risk of money laundering and terrorist financing. Companies and individuals from blacklisted countries face more stringent checks (for example from banks), when seeking to do business in the EU. Although not specifically related to tax, as with so many issues is seems, this piece of work has now encompassed the tax avoidance debate.

“Better Budgets: Making Tax Policy Better” report launch

Yesterday saw the launch of the report “Better Budgets: Making Tax Policy Better” jointly issued by the Institute for Government, Chartered Institute of Taxation, and the Institute for Fiscal Studies. The launch event had panellists from all three organisations, joined by Jane Ellison MP, Financial Secretary to the Treasury.

Forget the 48%. What if 97% voted “Remain”? In Gibraltar they did.

Gibraltar, the 6.8 km² British Overseas Territory on Spain’s southern coast voted 97% to remain. Yet it faces the same uncertain future as the rest of the UK. Gibraltar Chief Minister, The Hon Fabian Picardo was on The Andrew Marr Show this weekend, talking about the impact of Brexit.

Edward Troup at the UK Public Accounts Committee Global Tax Transparency Summit.

Edward Troup, Executive Chair of HMRC spoke this morning at the UK Public Accounts Committee Global Tax Transparency Summit.

Much of what Edward talked about was a tour through the recent activities of UK government and/or HMRC to tackle tax evasion and avoidance. He also said that action on international avoidance and evasion requires international cooperation. He then went on to talk about HMRC’s thoughts on transparency and taxpayer confidentiality.

New UK criminal offence for companies failing to prevent tax evasion

Companies and partnerships face the prospect of being criminally liable if their employees or agents facilitate tax evasion by third parties.

The UK government has taken the next step towards the introduction of a new criminal offence for companies and partnerships who fail to prevent their staff from facilitating tax evasion by a third party. The key point here is that this is not about corporations evading tax themselves, but evasion by third parties with whom any associated person interacts.

Jack Lew, US Treasury Secretary on Tax Avoidance, Earnings Stripping and Inversions

Speaking to CNBC today, Jack Lew, US Treasury Secretary spoke about his view on tax avoidance, and what the US is doing to tackle “frustration in tax systems that don’t seem fair”. This comes on the back of rules to stop US businesses inverting into lower tax jurisdictions, but little likelihood of more widespread US tax reform.