Information across bordersIndirect and Direct Taxation

Ian Young

15 April 2010

ICAEW

Tax and Society

Taxes are what we pay for civilised society

Olive Wendell Holmes – 1927 case

Judge in US Supreme Court 1902 - 1932

ICAEW

Tax and society

• authority, effectiveness, accountability and responsiveness is closely related to the ways in which governments are financed; and

• Taxation stimulates demands for representation, and an effective revenue authority is the central pillar of state capacity.

Taxation and State Building in Developing Countries

• IMF has suggested that tax needs to represent at least 15% to achieve the above

ICAEW

Taxation and borders

• Tax is levied at the country level

• Business and individuals operate internationally

ICAEW

Recent developments

• Exchange of information across borders

• Greater transparency within borders

• Pursuit of tax liabilities across borders

ICAEW

Administering the tax system

• Self Assessment

• Broadening the tax base

• Policing the system

• Exchanging information across borders

ICAEW

Tax, privacy and confidentiality

• Evasion and/or Avoidance

• Convention on Human Rights

• Confidentiality

• Powers and safeguards

• Taxpayers’ Charters

• Legal Professional Privilege

ICAEW

Some international developments

• JITSIC – Joint International Tax Shelter Information Centre

• Seoul Declaration and Cape Town Communiqué

• HNWI and Bank follow-on studies

• OECD

• European Commission

• United Nations

• VAT Package

• Country by country reporting

ICAEW

Transaction taxes

• VAT

• Transfer pricing

• OECD Business Restructuring

Information across bordersIndirect and Direct Taxation

Ian Young

15 April 2010