As I analyze the string of conjectures published by the International Consortium of Investigative Journalists (Icij) under the “Pandora Papers”And I prepare to refute them, the Organization for Economic Cooperation and Development (OECD) announced with great fanfare that the Global Minimum Tax of 15% was already a fact.
What the bureaucrats of that organization forget, in addition to the fact that their officials do not pay taxes on their salaries (what an irony!), Is that this agreement must be ratified by the legislatures in each of those countries. The most important country, where this agreement will not pass, is USA (EE.UU.).
US President Joe Biden has no chance of passing this law. Here they heard it first. So what will the OECD members do? Turn a blind eye to the US again?
Numerous civil, European and global organizations have already come out, calling this OECD initiative unfair and discriminatory towards third world countries (Global Tax Alliance, Tax Justice Network, Eurodad, etc.). Additionally, they remind the OECD that it does not have the legitimacy to act and that the forum for discussion of global tax matters is the United Nations (UN). Eurodad, in its statement, says: “It is time to start a really inclusive, transparent and country-led negotiation at the United Nations to stop tax havens and fix the failed international tax system.”
The correct forum is the UN and not the European Union (EU) and its freewheeling bodies, the OECD and the International Financial Action Group (FATF). Something that our officials do not understand. But I digress.
The resounding failure of socialist policies in Europe and the continued creation and maintenance of a caste of consultants and “specialists” in Brussels and Paris are the real motive behind attacks on tax competition. If Europeans were so sensitive to poverty and social inequity, they should begin by making economic reparations to their former colonies in Africa.
These were handed out like game pieces, looted from their natural resources and aggressively colonized thanks to the Berlin Conference of 1885 led by spotless Germans. But I digress again.
To think that the solution to global inequality is by eliminating tax competition is a fantasy. For this reason, I have decided to replicate a letter signed by more than 200 economists, including Milton Friedman and Jim Buchanan (both Nobel Laureates) that is still valid today. The underline is ours.
Lawyer and international analyst