All the main techniques used for capital fiight can be grouped into one area – abuse of cross-border regulation. Tax credit is already an approved method for dealing with revenues cross-border together with withholding taxes.Reverse Tax Credit can use the tax credit principles to deal with costs cross-border and eliminate the “need” for tax havens. Reverse Tax Credit can be enacted unilaterally by any country, and will automatically leverage the playing fields between companies, large or small, mul
SummaryStatoil reported on the minimum transparency requirement, called country-by-country reporting, on a half page in its sustainability report for 2014.PWYP Norway shows that Statoil could have easily reported on
a meaningful transparency requirement, called an extended country-by-country reporting, on that half page.When companies can show their country-by-country presence on a half page, why will politicians not demand it from them?
Summary:15 out of 18 elements have already been implemented in the extended country-by-country reporting. However, 3 critical elements are still missing for the legislation to work as intended and prevent companies from avoiding tax.
Summary:• Natural resources have the largest value creation potential to mobilize tax revenue, but profit often ends up elsewhere.• Today, the Extractive Industries can transfer significant profits out of the source country before it get taxed.• One simple policy proposal, aligned with US and EU regulation, will give investors and constituents the instrument to follow their money.• The proposal links taxpayments to the audited financial statements through 8 simple accounting numbers.
In January, a new legislation will be introduced in Norway that might prevent capital flight and ensure a greater degree of transparency. Three activists from the civil society in South Sudan, Uganda and Ghana explain why this law is vital for their work. See the video interview!
Summary • In 2012, government expenditure worldwide was USD 28 656 billion. Total tax burden was USD 18 821 billion.• This huge discrepancy can be reduced by closing loopholes in tax systems and preventing capital flight• This report is about analyzing and fixing loopholes in tax systems – increasing cost-efficiency and ensuring fairer competition in extractive industries.VIDEO: See the presentation of the report "Windfall Taxes".
Three simple tax mechanisms are the only ones needed in order to equate the taxation of multinational companies with national companiesAny country can enact these mechanisms as they are changes to the internal tax codeThe three mechanisms are precise as they target specific classes of transactions and are not based on parameters or estimates.The mechanisms are unique in that no country enacting them will trespass on any other country’s tax base
Extended Country-by-Country Reporting (ECBCR) is a measure to equate all businesses and ensure that key figures are reported for each country in which the company is present. The basis for the reporting must be the financial accounts - no other option for reporting provide trustworthy information to stakeholders and the wider society. To make sense, the information must be reported as it is included in the consolidated financial statements - before elimination. Eliminations must therefore be reported separately.
In the current amendment for CBCR there exists an exception which is contrary to Parliament`s petition resolution. Photo: Stortinget (CC BY-ND 2.0 / Flickr)
PWYP Norway's transparency demand and arguments get massive support from other consultative bodies, including Finance Norway, The Norwegian Accountant Organization, Media Companies National Association, Norwegian Editorial Association, Norwegian Journalist Association, Norwegian Press Association.
The OECD requested input on possible solutions to tax challenges with digitization. PWYP Norway has submitted its input.