In this seminar, we intend to discuss various short and longer-term impacts that would arise from the OECD's proposed corporate tax reform.
Corporate tax laws vary significantly between different jurisdictions. Over the past four decades, governments globally competed for business activity by lowering effective corporate tax rates. Most governments provide special tax incentives for businesses to invest and expand employment. Special economic zones often grant full corporate tax exemptions to stimulate commercial development. Corporate income tax incentives for research and development activities are common across countries’ corporate tax codes reflecting governments’ desire to stimulate innovation and business development.
While corporate tax competition is common government practice in the world economy, the OECD currently aims to curb international corporate tax competition. The OECD’s corporate tax reform proposals officially aim to address “corporate tax avoidance” and “unfairness in taxation”. The policy debate is driven by some governments’ motivation to increase revenues from taxes on corporate income. Economic impact assessments of the OECD’s current Pillar I and II proposals are still scarce. Individual governments have so far failed to conduct impact assessments or are hesitant to make their assessments available to the general public.
Join us for a discussion of the socio-economic impacts of the OECD’s proposed corporate tax reform:
- Who will gain most from the OECD’s Pillar I and II proposals: small countries or large countries?
- Who will pay the bill(s) resulting from the proposals?
- What will be the implications for global trade and investment policy?
- What will be the impacts on investments and governments’ aspirations to upgrade national economies?
- Why are governments resisting simpler and better rules to achieve transparency and fairness in taxation?
Dr Matthias Bauer will present the major findings of ECIPE’s new study on “The Impact(s) of the OECD’S Pillar I and II Proposals on Small Open Economies”.
Daniel Bunn from the US Tax Foundation will discuss the economic impacts of existing anti-BEPS measures and what that could mean for the OECD’s proposals.
Krister Andersson from BusinessEurope will talk about the OECD proposals’ implications for government behaviour, international tax competition, tax code complexity, and the sensitivity of public budgets to the business cycle.
Helge Sigurd Næss-Schmidt from Copenhagen Economics will discuss economic implications and critical aspects that have so far been neglected by tax policymakers.