Tax evasion and tax avoidance the tax payers view by kpg20724


Tax evasion and tax avoidance: the tax payers view

    •   Tax systems are local and not international. Cross border activity runs risk of double
        tax. No superpower to oversee it all.

    •   MNEs, certainly those quoted on stock exchanges, use codes of conduct. These
        require compliance with the rules; no exception.

    •   Fair share is not a term we can use; it’s arbitrary and not based on legal rules.

    •   Changing the TP rules to advantage LDCs can be discussed but means less profit to
        DCs. Will they approve? MNEs have only one profit and can’t inflate it to
        accommodate all countries.

    •   We favour for all countries an enhanced relationship (ER) between taxpayer and
        Revenue. This comes with internal control framework and transparency from side of
        taxpayer and with knowledge and trust from side of Revenue. Hence no need to
        publish data on per country basis to respond to profit and pricing questions.

    •   We favour capacity building for LDCs. An audit based on an internal control
        framework based on ER ought to be sufficient to address questions raised about

    •   The OECD should take into account complexity of its TPG guidelines and related
        topics; especially the revisions and new issues make compliance for LDCs more
        difficult to handle. The UN TP Manual will address some of these aspects but does not
        intend to replace the OECD TPG.

    •   A global consolidated tax system is utopia. No other tax base appears ready to
        globally take over CIT without problems we currently see.

    •   Dialogue and facts are key to the solution of the issue.


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