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Up to now we’ve had the ludicrous situation of governments blaming companies for aggressive tax avoidance schemes while companies reply they have followed the rules.
Stalemate.
Noe, it seems, governments are going to do what they should have done ages ago, and impose new rules which ensure that companies pay their fair share.
According to the OECD’s Centre for Tax Policy, new tax laws will be put before November’s G20 summit.
They should, say the OECD, be in effect “well before” 2020.
“The blame should be put on governments which have over the past 20 years let the rules shift away from what should have been achieved,” the OECD’s Pascal Saint-Adams tells the BBC, “we didn’t update the rules. We unfortunately needed a crisis to have this wake-up call to say we need to change because it is outdated. Now, governments have decided to move. It shows that when you have political support you can achieve technical changes.”
This will come as a blow to Ireland, Holland, Luxembourg, Monaco and assorted Caribbean rinky-dink tax havens.
No problem, just not going to happen. They have too much political clout.
And the problem with that is ??????
Yes indeed Mike, there’s only one way to stop tax avoidance – make the tax code really simple. But then you’d put the accountancy profession out of business,
Isn’t that what Gordon Brown pledged to do about 15 years ago ? Didn’t work then and probably won’t work now – where there’s a law there’s a team of accountants working on a way around it.
How interesting Mike, and it’s exactly that sort of attitude that has to be stamped out by the new rules. There’s always some nob somewhere who says ‘we’ll offer people freedom from regulation’ to do dodgy stuff as a cheap, no-work-involved way to make money. But if the G20 pass no-exceptions rules to dealing with tax evasion then even the Manxmen will have to fall in line however old their Tynwald is.
I notice the Isle of Man has already stated that it sees being the centre of Bitcoin transactions as its future
Back-dated? Ha Ha Dr Bob, Real teeth? Well, maybe for a while, until the clever clogs accountants find a way to circumvent it.
Will it be backdated and have real teeth?