DOCSLIB.ORG

The Rise of Soft Law and the Dichotomy Between the Anglo-Saxon Vision and the Continental European Approach Louis Tournier

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Rise of Soft Law and the Dichotomy Between the Anglo-Saxon Vision and the Continental European Approach Louis Tournier International Financial Regulation and Offshore Financial Centers : the Rise of Soft Law and the Dichotomy Between the Anglo-Saxon Vision and the Continental European Approach Louis Tournier To cite this version: Louis Tournier. International Financial Regulation and Offshore Financial Centers : the Rise ofSoft Law and the Dichotomy Between the Anglo-Saxon Vision and the Continental European Approach. Law. Université Panthéon-Sorbonne - Paris I, 2017. English. NNT : 2017PA01D012. tel-01592884 HAL Id: tel-01592884 https://tel.archives-ouvertes.fr/tel-01592884 Submitted on 25 Sep 2017 HAL is a multi-disciplinary open access L’archive ouverte pluridisciplinaire HAL, est archive for the deposit and dissemination of sci- destinée au dépôt et à la diffusion de documents entific research documents, whether they are pub- scientifiques de niveau recherche, publiés ou non, lished or not. The documents may come from émanant des établissements d’enseignement et de teaching and research institutions in France or recherche français ou étrangers, des laboratoires abroad, or from public or private research centers. publics ou privés. 1 PhD THESIS DECLARATION I, the undersigned FAMILY NAME TOURNIER NAME LOUIS Student ID no. 2000325 Thesis title: International Financial Regulation and Offshore Financial Centers: The Rise of Soft Law and The Dichotomy Between The Anglo-Saxon Vision and The Continental European Approach PhD in International Law and Economics Cycle 28 Student’s Tutor Prof. Claudio Dordi and Prof. Jean Marc Sorel Year of thesis defence 2017 DECLARE under my responsibility: 1) that, according to Italian Republic Presidential Decree no. 445, 28th December 2000, mendacious declarations, falsifying records and the use of false records are punishable under the Italian penal code and related special laws. Should any of the above prove true, all benefits included in this declaration and those of the temporary “embargo” are automatically forfeited from the beginning; 2) that the University has the obligation, according to art. 6, par. 11, Ministerial Decree no. 224, 30th April 1999, to keep a copy of the thesis on deposit at the “Bilioteche Nazionali Centrali” (Italian National Libraries) in Rome and Florence, where consultation will be permitted, unless there is a temporary “embargo” protecting the rights of external bodies and the industrial/commercial exploitation of the thesis; 3) that the Bocconi Library will file the thesis in its “Archivio Istituzionale ad Accesso Aperto” (Institutional Registry) which permits online consultation of the complete text (except in cases of temporary “embargo”); 4) that, in order to file the thesis at the Bocconi Library, the University requires that the thesis be submitted online by the student in unalterable format to Società 2 NORMADEC (acting on behalf of the University), and that NORMADEC will indicate in each footnote the following information: - PhD thesis : International Financial Regulation and Offshore Financial Centers: The Rise of Soft Law and The Dichotomy Between The Anglo-Saxon Vision and The Continental European Approach. ; - by TOURNIER LOUIS ; - defended at Università Commerciale “Luigi Bocconi” – Milano in the year 2017; - the thesis is protected by the regulations governing copyright (Italian law no. 633, 22nd April 1941 and subsequent modifications). The exception is the right of Università Commerciale “Luigi Bocconi” to reproduce the same, quoting the source, for research and teaching purposes; 5) that the copy of the thesis submitted online to Normadec is identical to the copies handed in/sent to the members of the Thesis Board and to any other paper or digital copy deposited at the University offices, and, as a consequence, the University is absolved from any responsibility regarding errors, inaccuracy or omissions in the contents of the thesis; 6) that the contents and organization of the thesis is an original work carried out by the undersigned and does not in any way compromise the rights of third parties (Italian law, no. 633, 22nd April 1941 and subsequent integrations and modifications), including those regarding security of personal details; therefore the University is in any case absolved from any responsibility whatsoever, civil, administrative or penal, and shall be exempt from any requests or claims from third parties; 7a) that the thesis is not subject to “embargo”, i.e. that it is not the result of work included in the regulations governing industrial property; it was not written as part of a project financed by public or private bodies with restrictions on the diffusion of the results; is not subject to patent or protection registrations. Date 25/01/2017 3 International Financial Regulation and Offshore Financial Centers: The Rise of Soft Law and The Dichotomy Between The Anglo-Saxon Vision and The Continental European Approach. A Thesis Submitted to the Faculty in fulfillment of the requirements for the degrees of Philosophy Doctorate in International Law & Economics Doctorat en Droit international et européen by Louis Tournier Università Commerciale Luigi Bocconi - Italy Université Paris I Panthéon-Sorbonne - France 2017 __________________ Thesis Advisors: __________________ Claudio Dordi, Phd. __________________ Jean-Marc Sorel, Phd. 4 5 ABSTRACT How does the lack of shared economic interests among OECD member countries weaken new international laws which are based on soft law that aim to contribute to the fight against the— financial and fiscal opacity of offshore— financial centers? Tax optimization involves using the rules of law to legally reduce a tax burden. But the line that separates tax optimization and tax evasion is tenuous and one could even say porous at best. Increasingly, it indeed appears that the issues of tax optimization and tax fraud are becoming one, as the rules of law can be easily circumvented and the limits easily crossed. This phenomenon is particularly evident in the field of international taxation. This thesis deals precisely with the issue of difficulties of Soft Law in regulating offshore financial centers. Indeed, the absence of common economic interests is blatant between the Anglo-Saxon countries and continental Europe on this issue, thus finding a common interest (that could be economic, cultural, environmental or security-related) appears to be key to the success of legislation based on Soft Law internationally. The common interest seems unattainable when it comes to combating tax optimization, since the main aim is to protect the social model of the welfare state in continental European countries. A dichotomy of size at the time when the Anglo-Saxon countries are increasingly lacking in such a model. 6 ABSTRACT En quoi l'absence d'intérêts économiques communs entre les pays membres de affaiblit-elle les nouvelles législations internationales basées sur le Soft lOCDELaw en vue de lutter contre l'opacité financière et fiscale des centres financiers offshore ? pour réduire en toute Loptimisationlégalité fiscale consiste à utiliser les règles de droit fiscale estsa ténuecharge pour fiscale. ne pasMais dire la frontière perméable. entre loptimisation fiscale et lévasion De plus en plus, scale et de fraude fiscale ne font plus les notions doptimisation fi nt contournables et ses limites quune,aisément tant franchissables. les règles de Ce droit phénomène sont facileme est tout particulièrement avéré sur le plan de la fiscalité internationale. La problématique de cette thèse met en lumière les difficultés du Soft Law à réguler les centres financiers offshore, tant l'absence d'intérêts (économiques) communs semble flagrante entre les pays anglo-saxons et l'Europe continentale sur la question. Or l'intérêt commun (qu'il soit économique, culturel, sécuritaire, environnemental) constitue la clef de voute du succès d'une législation basée sur le Soft Law à l'international. inexistant voire inaccessible en matière de lutte contre Lintérêt commun paraît celle-ci vise principalement à protéger le loptimisation fiscale, dès lors que modèled social de létat providence les paysdes anglo-saxonspays dEurope s en continentale. écartent toujours Une plus.ichotomie de taille à lheure o‘ 7 8 Content Introduction ...................................................................................................................... 17 I - Soft law as a tool for more efficient and effective international financial regulation ....... 27 A) The role of soft law in international law in the era of a globalized economy ............... 31 1) The origins of soft law and customary law .............................................................. 31 2) Soft law encouraged by Anglo-Saxon influence on the international scene ............. 34 3) Useful soft law with multiple functions including that of preparing the hard law of tomorrow ......................................................................................................................... 37 B) The importance of soft law in the development of banking and financial standards ... 41 1) A dichotomy between trade law and financial law also explains the appearance of soft law. ............................................................................................................................ 41 2) The Basel Committee, a symbol of soft international capital regulation .................. 43 3) A technical financial sector where the influential role of lobbies is contested ......... 48 C) The OECD and the Fight Against Tax Evasion Through OFCs. ....................................... 52
Load more

Recommended publications
  • Filing # 105742773 E-Filed 04/01/2020 03:21:58 PM
    Filing # 105742773 E-Filed 04/01/2020 03:21:58 PM IN THE CIRCUIT COURT OF THE 15TH JUDICIAL CIRCUIT IN AND FOR PALM BEACH COUNTY, FLORIDA CASE NO.: Division: BRADLEY C. BIRKENFELD, Plaintiff, v. LEONARD A. LAUDER; and, KEVIN M. COSTNER, Defendants. ________________________________ / COMPLAINT Comes now Plaintiff, Bradley C. Birkenfeld (”BIRKENFELD”), through his undersigned attorneys, and hereby files this Complaint against Defendants Leonard A. Lauder (“LAUDER”) and Kevin M. Costner (“COSTNER”) for fraud, negligent misrepresentation and intentional interference with advantageous or business relationship, all arising from publication of Plaintiff’s book, Lucifer’s Banker: The Untold Story of How I Destroyed Swiss Bank Secrecy (“Lucifer’s Banker”), published by Greenleaf Book Group Press (“Greenleaf”). Plaintiff alleges as follows: I. PARTIES 1. Plaintiff BIRKENFELD is a native-born United States citizen currently residing in Malta. BIRKENFELD is not a citizen of Malta and has no residence in the United States. 2. Defendant LAUDER resides in Palm Beach, Florida at his oceanfront mansion located at 26 South Ocean Boulevard, Palm Beach, Florida and at his New York City apartment. Defendant LAUDER is chairman emeritus of Estée Lauder, the world’s third-largest maker of cosmetics and fragrances. Defendant LAUDER stepped down as CEO of Estée Lauder in 1999. According to public reports, Defendant LAUDER’s net worth exceeds $15.9 billion. Defendant LAUDER’s Page 1 of 31 private banker at UBS bank (f/k/a Union Bank of Switzerland) was Christian Bovay in Geneva, Switzerland. Defendant LAUDER is a marquee name. 3. Defendant COSTNER resides in Santa Barbara, California. Defendant COSTNER is an American actor, director, producer, and musician.
    [Show full text]
  • Download Article (PDF)
    5th International Conference on Accounting, Auditing, and Taxation (ICAAT 2016) TAX TRANSPARENCY – AN ANALYSIS OF THE LUXLEAKS FIRMS Johannes Manthey University of Würzburg, Würzburg, Germany Dirk Kiesewetter University of Würzburg, Würzburg, Germany Abstract This paper finds that the firms involved in the Luxembourg Leaks (‘LuxLeaks’) scandal are less transparent measured by the engagement in earnings management, analyst coverage, analyst accuracy, accounting standards and auditor choice. The analysis is based on the LuxLeaks sample and compared to a control group of large multinational companies. The panel dataset covers the years from 2001 to 2015 and comprises 19,109 observations. The LuxLeaks firms appear to engage in higher levels of discretionary earnings management measured by the variability of net income to cash flows from operations and the correlation between cash flows from operations and accruals. The LuxLeaks sample shows a lower analyst coverage, lower willingness to switch to IFRS and a lower Big4 auditor rate. The difference in difference design supports these findings regarding earnings management and the analyst coverage. The analysis concludes that the LuxLeaks firms are less transparent and infers a relation between corporate transparency and the engagement in tax avoidance. The paper aims to establish the relationship between tax avoidance and transparency in order to give guidance for future policy. The research highlights the complex causes and effects of tax management and supports a cost benefit analysis of future tax regulation. Keywords: Tax Avoidance, Transparency, Earnings Management JEL Classification: H20, H25, H26 1. Introduction The Luxembourg Leaks (’LuxLeaks’) scandal made public some of the tax strategies used by multinational companies.
    [Show full text]
  • Privacy and Common Law Names: Sand in the Gears of Identification
    PRIVACY AND COMMON LAW NAMES: SAND IN THE GEARS OF IDENTIFICATION Adam Candeub* Abstract During the last two decades, law and regulation have expanded to require real name identification in virtually every aspect of life—from online purchases to healthcare. This slow, subtle transformation has rendered a de facto nullity the Constitution’s anonymity protection against compelled identity disclosure. This evolution also has rendered impracticable the traditional, but mostly forgotten, common law rights to use whatever name one wishes—the de facto right to pseudonymity. This common law right facilitates anonymity, which, in turn, facilitates privacy. This Article argues that the continued vitality of common law name rights, particularly in light of recent First Amendment jurisprudence, establishes a right to pseudonymity. This right includes, in certain circumstances, the ability to demand a government-issued identification under a common law pseudonym. This ability would allow individuals to frustrate regulatory identification regimes and regain some privacy. Beyond these practical implications, this Article, employing the classic property–liability distinction, demonstrates how name governance changed from the common law liability regime to a government-owned property regime. This shift reflects an important, and hitherto unrecognized, transformation in the legal relationship between the state and citizen. * Professor and Director, Intellectual Property, Information, and Communications Law Program. I wish to thank Jim Harper for his many helpful suggestions. Pro Julia facio omnes. 467 468 FLORIDA LAW REVIEW [Vol. 68 INTRODUCTION ..................................................................................... 468 I. PSEUDONYMITY, MANDATORY IDENTIFICATION, AND THE FIRST AMENDMENT ................................................................ 473 II. HOW THE COMMON LAW NAME DIED .................................... 481 A. The Common Law Name, National Registries, and the Unique American System of Identification ..................................
    [Show full text]
  • Environmental Taxes and Subsidies: What Is the Appropriate Fiscal Policy for Dealing with Modern Environmental Problems?
    William & Mary Environmental Law and Policy Review Volume 24 (2000) Issue 1 Environmental Justice Article 6 February 2000 Environmental Taxes and Subsidies: What is the Appropriate Fiscal Policy for Dealing with Modern Environmental Problems? Charles D. Patterson III Follow this and additional works at: https://scholarship.law.wm.edu/wmelpr Part of the Environmental Law Commons, and the Tax Law Commons Repository Citation Charles D. Patterson III, Environmental Taxes and Subsidies: What is the Appropriate Fiscal Policy for Dealing with Modern Environmental Problems?, 24 Wm. & Mary Envtl. L. & Pol'y Rev. 121 (2000), https://scholarship.law.wm.edu/wmelpr/vol24/iss1/6 Copyright c 2000 by the authors. This article is brought to you by the William & Mary Law School Scholarship Repository. https://scholarship.law.wm.edu/wmelpr ENVIRONMENTAL TAXES AND SUBSIDIES: WHAT IS THE APPROPRIATE FISCAL POLICY FOR DEALING WITH MODERN ENVIRONMENTAL PROBLEMS? CHARLES D. PATTERSON, III* 1 Oil spills and over-fishing threaten the lives of Pacific sea otters. Unusually warm temperatures are responsible for an Arctic ice-cap meltdown. 2 Contaminated drinking water is blamed for the spread of avian influenza from wild waterfowl to domestic chickens.' Higher incidences of skin cancer are projected, due to a reduction in the ozone layer. Our environment, an essential and irreplaceable resource, has been under attack since the industrial age began. Although we have harnessed nuclear energy, made space travel commonplace, and developed elaborate communications technology, we have been unable to effectively eliminate the erosion and decay of our environment. How can we deal with these and other environmental problems? Legislators have many methods to encourage or discourage individual or corporate conduct.
    [Show full text]
  • European Parliament Resolution of 26 March 2019 on Financial Crimes, Tax Evasion and Tax Avoidance (2018/2121(INI)) (2021/C 108/02)
    C 108/8 EN Official Journal of the European Union 26.3.2021 Tuesday 26 March 2019 P8_TA(2019)0240 Report on financial crimes, tax evasion and tax avoidance European Parliament resolution of 26 March 2019 on financial crimes, tax evasion and tax avoidance (2018/2121(INI)) (2021/C 108/02) The European Parliament, — having regard to Articles 4 and 13 of the Treaty on European Union (TEU), — having regard to Articles 107, 108, 113, 115 and 116 of the Treaty on the Functioning of the European Union (TFEU), — having regard to its decision of 1 March 2018 on setting up a special committee on financial crimes, tax evasion and tax avoidance (TAX3), and defining its responsibilities, numerical strength and term of office (1), — having regard to its TAXE committee resolution of 25 November 2015 (2) and its TAX2 committee resolution of 6 July 2016 (3) on tax rulings and other measures similar in nature or effect, — having regard to its resolution of 16 December 2015 with recommendations to the Commission on bringing transparency, coordination and convergence to corporate tax policies in the Union (4), — having regard to the results of the Committee of Inquiry into money laundering, tax avoidance and tax evasion, which were submitted to the Council and the Commission on 13 December 2017 (5), — having regard to the Commission’s follow-up to each of the above-mentioned Parliament resolutions (6), — having regard to the numerous revelations by investigative journalists, such as the LuxLeaks, the Panama Papers, the Paradise Papers and, more recently, the cum-ex scandals, as well as the money laundering cases involving, in particular, banks in Denmark, Estonia, Germany, Latvia, the Netherlands and the United Kingdom, — having regard to its resolution of 29 November 2018 on the cum-ex scandal: financial crime and loopholes in the current legal framework (7), (1) Decision of 1 March 2018 on setting up a special committee on financial crimes, tax evasion and tax avoidance (TAX3), and defining its responsibilities, numerical strength and term of office, Texts adopted, P8_TA(2018)0048.
    [Show full text]
  • FINANCE Offshore Finance.Pdf
    This page intentionally left blank OFFSHORE FINANCE It is estimated that up to 60 per cent of the world’s money may be located oVshore, where half of all financial transactions are said to take place. Meanwhile, there is a perception that secrecy about oVshore is encouraged to obfuscate tax evasion and money laundering. Depending upon the criteria used to identify them, there are between forty and eighty oVshore finance centres spread around the world. The tax rules that apply in these jurisdictions are determined by the jurisdictions themselves and often are more benign than comparative rules that apply in the larger financial centres globally. This gives rise to potential for the development of tax mitigation strategies. McCann provides a detailed analysis of the global oVshore environment, outlining the extent of the information available and how that information might be used in assessing the quality of individual jurisdictions, as well as examining whether some of the perceptions about ‘OVshore’ are valid. He analyses the ongoing work of what have become known as the ‘standard setters’ – including the Financial Stability Forum, the Financial Action Task Force, the International Monetary Fund, the World Bank and the Organization for Economic Co-operation and Development. The book also oVers some suggestions as to what the future might hold for oVshore finance. HILTON Mc CANN was the Acting Chief Executive of the Financial Services Commission, Mauritius. He has held senior positions in the respective regulatory authorities in the Isle of Man, Malta and Mauritius. Having trained as a banker, he began his regulatory career supervising banks in the Isle of Man.
    [Show full text]
  • Which Tax Havens Are the Most Central? Applying Social Network Analysis to Understand Firm Service Interactions
    Financial Geography Working Paper Series – ISSN 2515-0111 Which tax havens are the most Financial Working Geography Paper central? Applying social network analysis to understand firm service interactions Rory Crofts & Thomas Sigler School of Earth and Environmental Sciences, The University of Queensland, [email protected], [email protected] November 2018 # 20 1 Financial Geography Working Paper Series – ISSN 2515-0111 Which tax havens are the most central? Applying social network analysis to understand firm service interactions Abstract Tax havens play an increasingly important role in the global financial system. Recent scholarship has focused on a number of interrelated aspects of tax havens, including the drivers of their formation, firm and industry based perspectives on taxation, corporate structures, and their geographical position within the global economy. This paper adopts a network-based approach to tax havens, focusing on the ‘interlocking’ services provided by local firms. It focuses specifically on how law firms in 15 global tax havens are networked through common tax-related legal services. The analysis suggests that there is a ‘rich club’ of jurisdictions whose tax-related services are broad and central to firm activity, namely in the European core of the Netherlands, Ireland and Luxembourg. Relating to the rich core are a number of cliques, including the ‘Bermuda Triangle’ of Bermuda, Cayman Island, and British Virgin Islands; the crown dependencies of Isle of Man, Jersey, and Guernsey; and Asian hubs of Singapore, Mauritius and Hong Kong. Ship registry hubs such as Panama, Liberia, and Cyprus were somewhat more peripheral to the network as specialization reduces the number of common services.
    [Show full text]
  • Tax Heavens: Methods and Tactics for Corporate Profit Shifting
    Tax Heavens: Methods and Tactics for Corporate Profit Shifting By Mark Holtzblatt, Eva K. Jermakowicz and Barry J. Epstein MARK HOLTZBLATT, Ph.D., CPA, is an Associate Professor of Accounting at Cleveland State University in the Monte Ahuja College of Business, teaching In- ternational Accounting and Taxation at the graduate and undergraduate levels. axes paid to governments are among the most significant costs incurred by businesses and individuals. Tax planning evaluates various tax strategies in Torder to determine how to conduct business (and personal transactions) in ways that will reduce or eliminate taxes paid to various governments, with the objective, in the case of multinational corporations, of minimizing the aggregate of taxes paid worldwide. Well-managed entities appropriately attempt to minimize the taxes they pay while making sure they are in full compliance with applicable tax laws. This process—the legitimate lessening of income tax expense—is often EVA K. JERMAKOWICZ, Ph.D., CPA, is a referred to as tax avoidance, thus distinguishing it from tax evasion, which is illegal. Professor of Accounting and Chair of the Although to some listeners’ ears the term tax avoidance may sound pejorative, Accounting Department at Tennessee the practice is fully consistent with the valid, even paramount, goal of financial State University. management, which is to maximize returns to businesses’ ownership interests. Indeed, to do otherwise would represent nonfeasance in office by corporate managers and board members. Multinational corporations make several important decisions in which taxation is a very important factor, such as where to locate a foreign operation, what legal form the operations should assume and how the operations are to be financed.
    [Show full text]
  • International Journal of Islamic Economics and Finance Studies
    IJISEF INTERNATIONAL JOURNAL OF ISLAMIC ECONOMICS AND FINANCE STUDIES Uluslararası İslam Ekonomisi ve Finansı Araştırmaları Dergisi November 2016, Kasım 2016, Vol: 2, Issue: 3 Cilt: 2, Sayı: 3 e-ISSN: 2149-8407 p-ISSN: 2149-8407 journal homepage: http://ijisef.org/ Islamic Perspective on the Impact of Ethics and Tax for Nigerian Economic Development Almustapha A. Aliyu Department of Accounting, University of Sokoto, [email protected] Mohammed Yusuf Alkali Department of Accounting, Federal Polytechnic Birnin Kebbi, [email protected] Ibrahim Alkali Ministry of Finance Birnin Kebbi, [email protected] ARTICLE INFO ABSTRACT The tax system, policies, and structures have been one of the significant factors that directly affect the social and economic activities of any nation. Despite the importance of tax, the attitude of the taxpayers, their reaction concerning tax, could in greater sense facilitate or draw back the policies Keywords: Ethics, Tax and system from their original intention and purposes, particularly from Evasion, Tax an Islamic perspective. Islamic tax income is for the benefits of poor, Avoidance, Nigerian needy and less privileged people in the society. Even though, policies on Economy, Economic tax approved tax avoidance and made it legal, however, tax evasion is Development illegal in all society because it will deviate from its purpose. The most significant point, however, evading taxes by the people is viewed as unethical behaviour in any economy as the consequences could be greater to the economy and society. Several countries used Islamic system of tax because of the ethics of the system and possibly fewer evasions by the Muslims. Given that, with the number of the Nigerian Muslims, adoption of Islamic tax system will improve the revenue generation, and © 2016 PESA All rights thereby enhance the economic development of Nigerian economy.
    [Show full text]
  • What's Wrong with a Federal Inheritance Tax? Wendy G
    University of Baltimore Law ScholarWorks@University of Baltimore School of Law All Faculty Scholarship Faculty Scholarship Spring 2014 What's Wrong with a Federal Inheritance Tax? Wendy G. Gerzog University of Baltimore School of Law, [email protected] Follow this and additional works at: http://scholarworks.law.ubalt.edu/all_fac Part of the Estates and Trusts Commons, Taxation-Federal Commons, Taxation-Federal Estate and Gift ommonC s, and the Tax Law Commons Recommended Citation What's Wrong with a Federal Inheritance Tax?, 49 Real Prop. Tr. & Est. L.J. 163 (2014-2015) This Article is brought to you for free and open access by the Faculty Scholarship at ScholarWorks@University of Baltimore School of Law. It has been accepted for inclusion in All Faculty Scholarship by an authorized administrator of ScholarWorks@University of Baltimore School of Law. For more information, please contact [email protected]. WHAT'S WRONG WITH A FEDERAL INHERITANCE TAX? Wendy C. Gerzog* Synopsis: Scholars have proposed a federal inheritance tax as an alternative to the current federal transfer taxes, but that proposal is seriously flawed. In any inheritance tax model, scholars should expect to see significantly decreased compliance rates and increased administrative costs because, by focusing on the transferees instead of on the transferor, an inheritance tax would multiply the number oftaxpayers subject to the tax. This Article reviews common characteristics ofexisting inheritance tax systems in the United States and internationally-particularly in Europe. In addition, the Article analyzes the novel Comprehensive Inheritance Tax (CIT) proposal, which combines some elements of existing inheritance tax systems with some features ofthe current transfer tax system and delivers the CIT through the federal income tax system.
    [Show full text]
  • The Financial Secrecy Index: Shedding New Light on the Geography of Secrecy
    The Financial Secrecy Index: Shedding New Light on the Geography of Secrecy Alex Cobham, Petr Janský, and Markus Meinzer Abstract Both academic research and public policy debate around tax havens and offshore finance typically suffer from a lack of definitional consistency. Unsurprisingly then, there is little agreement about which jurisdictions ought to be considered as tax havens—or which policy measures would result in their not being so considered. In this article we explore and make operational an alternative concept, that of a secrecy jurisdiction and present the findings of the resulting Financial Secrecy Index (FSI). The FSI ranks countries and jurisdictions according to their contribution to opacity in global financial flows, revealing a quite different geography of financial secrecy from the image of small island tax havens that may still dominate popular perceptions and some of the literature on offshore finance. Some major (secrecy-supplying) economies now come into focus. Instead of a binary division between tax havens and others, the results show a secrecy spectrum, on which all jurisdictions can be situated, and that adjustment lfor the scale of business is necessary in order to compare impact propensity. This approach has the potential to support more precise and granular research findings and policy recommendations. JEL Codes: F36, F65 Working Paper 404 www.cgdev.org May 2015 The Financial Secrecy Index: Shedding New Light on the Geography of Secrecy Alex Cobham Tax Justice Network Petr Janský Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague Markus Meinzer Tax Justice Network A version of this paper is published in Economic Geography (July 2015).
    [Show full text]
  • Analysis Ofireland's Corporation Tax Roadmap
    Analysis of Ireland’s Corporation Tax Roadmap Introduction In 2017 the Department of Finance undertook an independent review of Ireland’s corporation tax code, authored by Mr Seamus Coffey. This was designed to complement the work being done at the OECD and EU level to establish new international tax standards. In facilitating this review, the Department of Finance conducted a public consultation seeking the views of the public and interested parties on the matters identified by the terms of reference of the review. The consultation ran from 21 February to 4 April 2017. Oxfam Ireland prepared a submission in relation to this. Mr Coffey delivered his review to the Minister for Finance and for Public Expenditure and Reform, Paschal Donohoe T.D., on 30 June 2017. The Review made 18 recommendations under the terms of reference. In the review, Mr Coffey noted that a number of the recommendations are very technical and complex and will require further consultation. In late 2017/early 2018 the Minister for Finance and Public Expenditure & Reform launched a public consultation on certain recommendations of the Coffey Review and on the implementation of the EU Anti-Tax Avoidance Directives (ATADs) that Ireland had signed up to (the Coffey/ATAD consultation). This consultation process asked for feedback on nine specific questions related to the above and also provided the opportunity to provide input on areas outside these 9 questions. Oxfam Ireland completed a second detailed submission in relation to this second consultation both on the 9 questions and on areas outside the nine questions. Ireland’s Corporation Tax Roadmap (hereafter referred to as ‘the Report’) is a result of this consultation process.
    [Show full text]