How UK tax policies affect the rights of persons

Transcript:How UK tax policies affect the rights of persons:
How UK tax policies affect the rights of persons with disabilities in the global South Rights Require resources Access to social and economic rights in particular are often resource dependent including health, education, social protection and other areas. Total revenue as a % of GDP in the global South vary from 9% of GDP in Bangladesh, 11% in Guatemala, 14% in Ghana to 18% in Kenya, while OECD country average is 33% impact on potential for advancing rights of persons with disabilities Global South countries are more dependent on corporate taxes in mobilising revenue. African countries mobilise 19% of total tax from Corporate Taxes, in Latin America and Caribbean 16%, and in OECD countries this was 10% 18-02-2016 2 transparency of both Revenue and spending side of budgets We also need to know where are the ‘revenue leakages’ due to international taxation, which the IMF estimates constitute at least $US200-US$500bn We also should know how much global South countries lose in terms of Illicit Financial Flows (IFFs) of unrecorded, mispriced trade and investment flows, e.g. African countries lose an estimated US$88bn We also lack budget transparency esp. in terms of disaggregation of beneficiaries in terms of disability, targeted budget spend, and budget spending aligned with addressing disabilities. 18-02-2016 3 Domestic Tax policies have impacts on other countries States create tax policies that aim to enhance both economic growth, and advancing equity – but there are trade-offs between these two aims, both domestic/ and international Lowering corporate tax rates reduce available public revenue to address rights and SDGs, and create international tax competition, even if they are announced as investment incentives States have extraterritorial obligations to not harm enjoyment of rights elsewhere, while SDGs recognise the ’global partnership for development’ 18-02-2016 4 UK’s Tax Policies that have Extraterritorial IMPACTS Tax treaties define taxing rights between global North and global South countries, e.g. on investment income, and revenue e.g. from royalties/ interests/ intra-firm transfers/sale of company assets UK has tax treaties with over 130 countries, 13 of which (e.g. Gambia, Sierra Leone have 0% rated taxes on payment on dividends to shareholders abroad), they restrict the ability of global South countries to tax foreign companies. UK investment treaties also used to seek arbitration when a large multinational company seeks to overturn a tax decision in a global South country (e.g. Nepal-UK tax treaty used to overturn a capital gains tax charge on