tax heaven lesson

1. TAX HAVENS
Mikhail Maslennikov
www.oxfamitalia.org
www.ecorl.it/en
1

2.  Inequalities
 Tax Havens
 Some suggestions
www.ecorl.it/en
2
TOPICS:

3. Combat inequality:
the Challenge of our time
www.ecorl.it/en
3

4. Unequal World
Wealth
Income
vs vs
Access to land Access to services
www.ecorl.it/en
4

5. Since 2015, 1% of the world's population has more wealth than the remaining
99% of the planet's population.
In 2016: 8 billionaires possessed the same wealth as the poorest half of the
population (3.7 billion people).
Non-Inclusive Growth: 46% increase in global income (between 1988 and 2011)
was 10% of the population. The poorest half of the world's population benefited
from just 10% of the income surplus registered in 24 years (less than 3 dollar a
year).
Global inequality decreases (slightly), but inequality grows in countries (and
among countries).
Inequality: Delays and Dangers to Fighting Extreme Poverty
www.ecorl.it/en
5
Number of Inequality …

6. www.ecorl.it/en
6
•Market fundamentalism:
'unmanaged' globalization;
weaken the public governance of economic processes;
privatization of public services;
de-regulation of markets;
austerity policies.
•Elites Political capture: the power perpetuating itself.
Excessive influence implies disproportionate power in initiating
decision-making processes that favor particular interests rather
than the interests of the whole community
Rising inequality: the reasons

7. Italy: national wealth
Fonte: Global Wealth Databook 2015 di Credit Suisse, rielaborazione Oxfam
0% 1% 2% 2% 2% 5% 8% 10%
14%
30%
24%
0%
10%
20%
30%
40%
50%
60%
1 2 3 4 5 6 7 8 9 10
Percentualedell'incrementodiricchezza
nelperiodo2000-2015
Decile di popolazione nazionale
Distribtion of wealth increase within italian population 2000-2015
Incremento di ricchezza nel periodo 2000-2015 L'1% più riccowww.ecorl.it/en
7

8. Italy: per capita income
1%
3%
5%
6%
8%
9%
11%
12%
16%
29%
0%
5%
10%
15%
20%
25%
30%
35%
1 2 3 4 5 6 7 8 9 10
Percentualedell'incrementodireddito
nelperiodo1988-2011
Decile della popolazione nazionale
Distribution of per capita income within italian population, 1988-2011
Fonte: World Panel Income Distribution Database di Lakner e Milanovic, rielaborazione Oxfam
www.ecorl.it/en
8

9. TAX HAVENS
www.ecorl.it/en
9
Tax havens are territories or jurisdictions that:
• provide tax advantages for non-resident physical or legal
entities even in the absence of significant economic activity
• they provide low or zero effective tax rates on certain
types of income
• do not participate in the automatic exchange of tax
information with the financial authorities of other countries
• have adopted laws or regulations that guarantee absolute
secrecy on the structure of companies or actual
beneficiaries of legal entities

10. Inequality is not inevitable !
www.ecorl.it/en
10

11. Some suggestions
1.Financial Transparency: Country-by-country public accounting for multinationals
operating in the EU. Control of declared profits and taxes
paid in each country where a corporation operates through its subsidiaries.
2. Common blacklisting of EU tax havens, in order to
Penalize EU countries and corporations doing
business with tax havens.
3. Corporations have to pay taxes where they have their own
economic activity: the principle of 'single entity' and model of
unit taxation (global tax base subdivided into ad hoc criteria
between the countries concerned).
4. Centralized public registers of the actual beneficiaries
assets and businesses
5. To put an end to harmful tax practices and
preferential tax regimes at national level (SHOOTING RACE)
6. Democratization of reform processes
of international taxation: the Global Tax Bodywww.ecorl.it/en
11

12. www.ecorl.it/en
12