5th June, 2015
An international commission has called for multinational companies to be taxed as single entities as part of an overhaul of the "outdated" corporate tax system to help deliver equity between the world’s rich and poor.
The Independent Commission for the Reform of International Corporate Taxation – initiated by a coalition of organisations including the World Council of Churches, Christian Aid, Oxfam and the Tax Justice Network – released a global declaration this week in which it argues that the current tax system is obsolete and ineffective in preventing tax abuse by multinational companies and makes a number of recommendations for reform.
These include taxing multinational companies as single firms, curbing tax competition between nations to prevent a "race to the bottom" and increasing the public transparency of taxes paid by multinationals.
José Antonio Ocampo, chair of the ICRICT and a former UN under-secretary general, said the debate was about equity between good and bad taxpayers, capital and labor, the rich and poor and between developed and developing countries.
"International corporate tax reforms should be considered from a global public interest perspective rather than national or corporate advantage," he said.
The declaration was launched in Italy on Tuesday.
– DAVID ADAMS
