In a declaration published on Tuesday, 20 September, the Independent Commission for the Reform of International Corporate Taxation (ICRICT) calls for change in global tax governance.
According to ICRICT, small developing countries are intrinsically at a disadvantage. “Capacity building can only go so far in bridging the gap in global governance”, it writes.
It thus proposes several changes in the processes and structure of the Inclusive Framework: the creation of an autonomous secretariat that reflects all members of the Inclusive Framework, not just OECD members; greater transparency and accountability in the decision-making process; and remediation of the current lack of political representation.
ICRICT calls on governments to implement emergency tax measures to combat the current crisis and inflation. In particular, it recommends a tax on companies’ windfall profits (see EUROPE 13017/14) and a surtax on companies that raise their prices well above costs.
ICRICT criticises the OECD agreement’s lack of ambition on minimum corporate taxation (see EUROPE 13018/8). “Overall, the OECD/G20 Inclusive Framework proposals are not consistent or fair in principles, in design or in outcomes, especially with regard to the interests of developing countries or emerging markets,” it believes. It suggests alternative measures for developing countries, such as progressive digital services taxes and the revision of tax policies and treaties.
“If real multilateralism on tax matters is failing and blocked by individual countries’ interests, we as a commission strongly encourage countries not to wait. Rather they should move forward and consider their own alternative measures, formulated where possible in a coordinated manner, to be actively implemented without any delay,” it concludes.
To read ICRICT’s declaration: https://aeur.eu/f/36j (Original version in French by Anne Damiani)