Transcript Tax Justice - Irish Congress of Trade Unions

Debt and Development Coalition Ireland
ICTU Global Solidarity Summer School




National network
Solidarity based with activists and social
movements in the Global South
Focus on financial exploitation of the Global
South: South-North resource flows
Debt, role of international financial
institutions (World Bank; IMF) and tax justice



Pre- existing poverty levels – not on target to
meet MDGs
External Debt $3 trillion ($100m payments
per day)
Financial crisis: reduction in remittances
(Kenya: 5% GDP, fall in ‘08 by 33%); growing
unemployment (up by at least 40m in ‘09 GS);
$2 trillion financial shortfall in Global South;
30% drop in exports.



Food Crisis: FAO: 100m more people in
chronic hunger in 2009.
Climate crisis: Approx 26 million people
displaced already; 375 million people may be
affected by climate disasters by 2015; 200
million people may be displaced each year by
2050; major cities dependent on water from
mountain ranges face collapse
A new debt crisis: Countries such as Zambia
already facing unsustainable debts




‘Tax Consensus’ – tax competition as
approach to national ec devmt and corporate
business models
Low tax regimes by govmt & ‘tax
minimisation’
Strongly supported by World Bank and IMF in
Global South
Increasing role of tax havens: $7 trillion
stashed in tax havens



At least $160 billion every year lost to
Southern countries due to tax evasion.
Significantly greater than all the aid received
by South from North.
$160 Bn Could save 350,000 children’s lives



Transfer pricing – companies exaggerate
costs and minimise profits
60% of international trade takes place within
TNCs
Profits are transferred to holding companies
based in tax havens




Allow non-residents to open bank accounts
No disclosure of information to other
countries
Cayman Islands – 5th largest banking centre $2 trillion
Also Switzerland, Isle of Man, Jersey – and
Ireland



Strong tax base essential if countries are to
build stronger democratic states:
Rltns bwtn gvmt & citizens, and real exit
strategies from aid dependency.
Direct taxation and corporate taxation NB.



Banks and hedge funds engaging in risky
practices used tax havens.
Losses and liabilities hidden off balance sheet
G20 / Obama raising questions about tax
havens; OECD ‘concern’; race to sign info
exchange agreements



End to banking secrecy – automatic exchange
of information
Control over accountancy firms – end to selfregulation
Country-by-country reporting for TNCs



Debt and Development Coalition Ireland &
wider tax justice network
We need trade union support in Ireland!
[email protected]; 01 6174835;
www.debtireland.org