Brief Number 9 governments involved in the BEPS process to 100 will lead to any rebalancing of th... more Brief Number 9 governments involved in the BEPS process to 100 will lead to any rebalancing of the perspective. The mandate from the G20 leaders for the BEPS project was to reform international tax rules to ensure that MNEs could be taxed 'where economic activities occur and value is created'. However, they also added 'while respecting the sovereignty of each country to design its own rules'. These aims are contradictory. Ensuring that taxation is in line with economic substance requires stronger coordination between states. This inevitably restricts the freedom of states, although it is the only way to restore their effective power to tax MNEs.
European yearbook of international economic law, 2016
This paper discusses the relationship between academic research and engagement with policy and po... more This paper discusses the relationship between academic research and engagement with policy and political practices, seen through the author’s recollections of his personal experiences extending over half a century working in the field of international economic law. While stressing the importance of an interaction of theory and practice, it also emphasises the need to maintain academic independence and a research perspective, based on reflexive methodology (situating the various actors and their positions in the field) and immanent critique (close analysis of the self-understandings of practitioners in a field and detailed examination of their practices, contrasting the two). It traces the changing character of the relationship between research and political practice, and the increased need for engagement especially by critical scholars of international economic law with critical political practice. This need stems from the characteristics of global governance in the current era, dominated by corporatist public-private structures controlled by small elites, and confronting complex problems that place an increased importance on specialist expertise. This is often depoliticised as technocratic, creating a wide gap between such expert knowledge and the rhetoric of political debate.
There has not been a retreat but a transformation of the state, involving significant changes in ... more There has not been a retreat but a transformation of the state, involving significant changes in both the public sphere of politics and the so-called private sphere of economic activity, and in their modes of interaction, especially law. The privatization of state-owned assets and the reduction of direct state economic intervention have not led to a reduced role of the state but to changes in its form, involving new types of formalized regulation, the fragmentation of the public sphere, the decentering of the state and the emergence of multi-level governance. This has been complemented by the increased salience of "private" regulation, so that in many ways the apparently private sphere of economic activity has become more public. In fact, there has been a complex process of interaction with a blurring of the divisions between apparently private and public regulation. Despite talk of deregulation there has been extensive reregulation, or formalization of regulation, and the emergence of global regulatory networks, intermingling the public and the private. The transition from government to governance means a lack of a clear hierarchy of norms, a blurring of distinctions between hard and soft law, and a fragmentation of public functions entailing a resurgence of technocracy.
The World Trade Organization (WTO) acts in many ways as a global governance node, a point of inte... more The World Trade Organization (WTO) acts in many ways as a global governance node, a point of intersection of a variety of regulatory networks. The interaction of WTO trade rules with other regulatory arrangements creates complex normative interactions, in which neo-liberal market-access obligations are considered to have generally overridden substantive standards. This paper will examine first the procedural and institutional question of the possible inclusion of human rights principles explicitly within the WTO framework; secondly, the more substantive question of the relationship between the perspectives and discourses of trade and human rights. In conclusion, the paper will return to the institutional issues by discussing the strategic aspects of the trade-human rights debates in the context of the role of the WTO as a node of global governance.
The international tax system developed as a form of technocratic governance, aimed at facilitatin... more The international tax system developed as a form of technocratic governance, aimed at facilitating international investment, neglecting provisions for cooperation between national governments for tax enforcement. Its endogenous flaws resulted in its politicization in the 1970s, and again in the 1990s, leading to an increasingly technicized form of global governance. The great financial crisis was even more disruptive and accelerated a shift toward increasingly volatile interactions between the spheres of technocracy and politics. Complex global problems requiring long time-horizons are dealt with by increasingly narrowly focused technical specialists, dominated by corporatized bureaucracies operating in public-private symbiosis; while in the sphere of politics, a wider public seeks simple solutions and mistrusts experts, with good reason given the experience of regulatory failures, often due to the capture of regulation by private interests. Instant communication favors opinion-formers claiming authority, while representative democracy has shifted to "audience representation," opening the way for demagogue leaders, as well as clientelism and corruption. While the financial crisis opened up possibilities for a paradigm shift in international tax governance, the tensions in both the technocratic and political spheres, as well as the growing gap between them, make it hard to achieve a stable and effective outcome.
A. Developing a Comprehensive Approach to ‘Offshore’ Since the mid-1990s a number of internationa... more A. Developing a Comprehensive Approach to ‘Offshore’ Since the mid-1990s a number of international initiatives have begun to try to tackle the various problems caused by the existence of tax havens and offshore finance centres (OFCs). There have also been some attempts to coordinate these initiatives, which is vital given the interrelated nature of the problems. Although some progress has been made, the initiatives have faced a number of obstacles and difficulties, resulting in significant setbacks. This paper aims to survey what has been done so far, and provide an analysis of the problems, to support renewal of these initiatives. Growing Concerns Until relatively recently the issues of tax havens and OFCs have not been a focus for politi-cal debates, for a number of reasons. They have been viewed as raising complex and technical problems, and certainly the national officials dealing with them, and even politi-cians, have preferred to depoliticise them, so they have been managed by an increasingly complex network of technical arrangements. At the national level, taxation and finance have generally been debated only in terms of the impact of interest rates and personal tax on
On the basis of discussions with workers and trade unionists in Coventry, Linwood, France and Spa... more On the basis of discussions with workers and trade unionists in Coventry, Linwood, France and Spain, Sol Picciotto reconstructs the events which culminated in pitched battles at the Talbot-Poissy plant in January. He shows how Peugeot was able to create and use every division between workers; how the intervention of the ‘Socialist’ government seriously weakened workers' organisations; and illustrates the difficulty of organising international solidarity between nationally-oriented labour movements.
If you would like to make any comments on this working paper please contact the author directly w... more If you would like to make any comments on this working paper please contact the author directly within 90 days of publication. Disclaimer This article has been written as part of a series of publications issued from the Centre for Tax System Integrity. The views contained in this article are representative of the author only. The publishing of this article does not constitute an endorsement of or any other expression of opinion by the Australian National University or the Commissioner of Taxation of the author's opinion. The Australian National University and the Commissioner of Taxation do not accept any loss, damage or injury howsoever arising that may result from this article. This article does not constitute a public or private ruling within the meaning of the Taxation Administration Act 1953, nor is it an advance opinion of the Commissioner of Taxation. iii THE CENTRE FOR TAX SYSTEM INTEGRITY WORKING PAPERS The Centre for Tax System Integrity (CTSI) is a specialised research unit set up as a partnership between the Australian National University (ANU) and the Australian Taxation Office (Tax Office) to extend our understanding of how and why cooperation and contestation occur within the tax system. This series of working papers is designed to bring the research of the Centre for Tax System Integrity to as wide an audience as possible and to promote discussion among researchers, academics and practitioners both nationally and internationally on taxation compliance. The working papers are selected with three criteria in mind: (1) to share knowledge, experience and preliminary findings from research projects; (2) to provide an outlet for policy focused research and discussion papers; and (3) to give ready access to previews of papers destined for publication in academic journals, edited collections, or research monographs.
This article suggests a variant on the proposal for a global anti-base erosion tax (GloBE), which... more This article suggests a variant on the proposal for a global anti-base erosion tax (GloBE), which is more equitable, far less complex, and more practical, as it could be introduced by a coalition of willing states.TEXTThe international efforts to reform taxation of multinational enterprises (MNEs) have reached a critical turning point. The current proposals to stem profit-shifting provide elements for a way forward, but the overall package is complex and could only be implemented through a universally adopted multilateral tax convention, which is highly improbable. We propose a variation of the key proposal for a global anti-base erosion tax (GloBE), which is more equitable, far less complex, and could be introduced by a coalition of willing states.Launched after the great financial crash a decade ago, and following the explosion in profit shifting that took place from the 1990s onwards, an effective outcome for this initiative is now even more urgent as the world economy is plunged into a new crisis sparked by the global pandemic. The introduction of country-by-country reporting (CbCR) for MNEs has given tax authorities unprecedented insights into profit shifting as it affects their tax bases; and the publication of limited, aggregate data has shown the global scale of the problem to exceed US$1 trillion each year in tax losses. Yet these attempts to reform international rules designed a century ago have created a logjam, due mainly to the perceived need to achieve an illusory worldwide consensus among states
Brief Number 9 governments involved in the BEPS process to 100 will lead to any rebalancing of th... more Brief Number 9 governments involved in the BEPS process to 100 will lead to any rebalancing of the perspective. The mandate from the G20 leaders for the BEPS project was to reform international tax rules to ensure that MNEs could be taxed 'where economic activities occur and value is created'. However, they also added 'while respecting the sovereignty of each country to design its own rules'. These aims are contradictory. Ensuring that taxation is in line with economic substance requires stronger coordination between states. This inevitably restricts the freedom of states, although it is the only way to restore their effective power to tax MNEs.
European yearbook of international economic law, 2016
This paper discusses the relationship between academic research and engagement with policy and po... more This paper discusses the relationship between academic research and engagement with policy and political practices, seen through the author’s recollections of his personal experiences extending over half a century working in the field of international economic law. While stressing the importance of an interaction of theory and practice, it also emphasises the need to maintain academic independence and a research perspective, based on reflexive methodology (situating the various actors and their positions in the field) and immanent critique (close analysis of the self-understandings of practitioners in a field and detailed examination of their practices, contrasting the two). It traces the changing character of the relationship between research and political practice, and the increased need for engagement especially by critical scholars of international economic law with critical political practice. This need stems from the characteristics of global governance in the current era, dominated by corporatist public-private structures controlled by small elites, and confronting complex problems that place an increased importance on specialist expertise. This is often depoliticised as technocratic, creating a wide gap between such expert knowledge and the rhetoric of political debate.
There has not been a retreat but a transformation of the state, involving significant changes in ... more There has not been a retreat but a transformation of the state, involving significant changes in both the public sphere of politics and the so-called private sphere of economic activity, and in their modes of interaction, especially law. The privatization of state-owned assets and the reduction of direct state economic intervention have not led to a reduced role of the state but to changes in its form, involving new types of formalized regulation, the fragmentation of the public sphere, the decentering of the state and the emergence of multi-level governance. This has been complemented by the increased salience of "private" regulation, so that in many ways the apparently private sphere of economic activity has become more public. In fact, there has been a complex process of interaction with a blurring of the divisions between apparently private and public regulation. Despite talk of deregulation there has been extensive reregulation, or formalization of regulation, and the emergence of global regulatory networks, intermingling the public and the private. The transition from government to governance means a lack of a clear hierarchy of norms, a blurring of distinctions between hard and soft law, and a fragmentation of public functions entailing a resurgence of technocracy.
The World Trade Organization (WTO) acts in many ways as a global governance node, a point of inte... more The World Trade Organization (WTO) acts in many ways as a global governance node, a point of intersection of a variety of regulatory networks. The interaction of WTO trade rules with other regulatory arrangements creates complex normative interactions, in which neo-liberal market-access obligations are considered to have generally overridden substantive standards. This paper will examine first the procedural and institutional question of the possible inclusion of human rights principles explicitly within the WTO framework; secondly, the more substantive question of the relationship between the perspectives and discourses of trade and human rights. In conclusion, the paper will return to the institutional issues by discussing the strategic aspects of the trade-human rights debates in the context of the role of the WTO as a node of global governance.
The international tax system developed as a form of technocratic governance, aimed at facilitatin... more The international tax system developed as a form of technocratic governance, aimed at facilitating international investment, neglecting provisions for cooperation between national governments for tax enforcement. Its endogenous flaws resulted in its politicization in the 1970s, and again in the 1990s, leading to an increasingly technicized form of global governance. The great financial crisis was even more disruptive and accelerated a shift toward increasingly volatile interactions between the spheres of technocracy and politics. Complex global problems requiring long time-horizons are dealt with by increasingly narrowly focused technical specialists, dominated by corporatized bureaucracies operating in public-private symbiosis; while in the sphere of politics, a wider public seeks simple solutions and mistrusts experts, with good reason given the experience of regulatory failures, often due to the capture of regulation by private interests. Instant communication favors opinion-formers claiming authority, while representative democracy has shifted to "audience representation," opening the way for demagogue leaders, as well as clientelism and corruption. While the financial crisis opened up possibilities for a paradigm shift in international tax governance, the tensions in both the technocratic and political spheres, as well as the growing gap between them, make it hard to achieve a stable and effective outcome.
A. Developing a Comprehensive Approach to ‘Offshore’ Since the mid-1990s a number of internationa... more A. Developing a Comprehensive Approach to ‘Offshore’ Since the mid-1990s a number of international initiatives have begun to try to tackle the various problems caused by the existence of tax havens and offshore finance centres (OFCs). There have also been some attempts to coordinate these initiatives, which is vital given the interrelated nature of the problems. Although some progress has been made, the initiatives have faced a number of obstacles and difficulties, resulting in significant setbacks. This paper aims to survey what has been done so far, and provide an analysis of the problems, to support renewal of these initiatives. Growing Concerns Until relatively recently the issues of tax havens and OFCs have not been a focus for politi-cal debates, for a number of reasons. They have been viewed as raising complex and technical problems, and certainly the national officials dealing with them, and even politi-cians, have preferred to depoliticise them, so they have been managed by an increasingly complex network of technical arrangements. At the national level, taxation and finance have generally been debated only in terms of the impact of interest rates and personal tax on
On the basis of discussions with workers and trade unionists in Coventry, Linwood, France and Spa... more On the basis of discussions with workers and trade unionists in Coventry, Linwood, France and Spain, Sol Picciotto reconstructs the events which culminated in pitched battles at the Talbot-Poissy plant in January. He shows how Peugeot was able to create and use every division between workers; how the intervention of the ‘Socialist’ government seriously weakened workers' organisations; and illustrates the difficulty of organising international solidarity between nationally-oriented labour movements.
If you would like to make any comments on this working paper please contact the author directly w... more If you would like to make any comments on this working paper please contact the author directly within 90 days of publication. Disclaimer This article has been written as part of a series of publications issued from the Centre for Tax System Integrity. The views contained in this article are representative of the author only. The publishing of this article does not constitute an endorsement of or any other expression of opinion by the Australian National University or the Commissioner of Taxation of the author's opinion. The Australian National University and the Commissioner of Taxation do not accept any loss, damage or injury howsoever arising that may result from this article. This article does not constitute a public or private ruling within the meaning of the Taxation Administration Act 1953, nor is it an advance opinion of the Commissioner of Taxation. iii THE CENTRE FOR TAX SYSTEM INTEGRITY WORKING PAPERS The Centre for Tax System Integrity (CTSI) is a specialised research unit set up as a partnership between the Australian National University (ANU) and the Australian Taxation Office (Tax Office) to extend our understanding of how and why cooperation and contestation occur within the tax system. This series of working papers is designed to bring the research of the Centre for Tax System Integrity to as wide an audience as possible and to promote discussion among researchers, academics and practitioners both nationally and internationally on taxation compliance. The working papers are selected with three criteria in mind: (1) to share knowledge, experience and preliminary findings from research projects; (2) to provide an outlet for policy focused research and discussion papers; and (3) to give ready access to previews of papers destined for publication in academic journals, edited collections, or research monographs.
This article suggests a variant on the proposal for a global anti-base erosion tax (GloBE), which... more This article suggests a variant on the proposal for a global anti-base erosion tax (GloBE), which is more equitable, far less complex, and more practical, as it could be introduced by a coalition of willing states.TEXTThe international efforts to reform taxation of multinational enterprises (MNEs) have reached a critical turning point. The current proposals to stem profit-shifting provide elements for a way forward, but the overall package is complex and could only be implemented through a universally adopted multilateral tax convention, which is highly improbable. We propose a variation of the key proposal for a global anti-base erosion tax (GloBE), which is more equitable, far less complex, and could be introduced by a coalition of willing states.Launched after the great financial crash a decade ago, and following the explosion in profit shifting that took place from the 1990s onwards, an effective outcome for this initiative is now even more urgent as the world economy is plunged into a new crisis sparked by the global pandemic. The introduction of country-by-country reporting (CbCR) for MNEs has given tax authorities unprecedented insights into profit shifting as it affects their tax bases; and the publication of limited, aggregate data has shown the global scale of the problem to exceed US$1 trillion each year in tax losses. Yet these attempts to reform international rules designed a century ago have created a logjam, due mainly to the perceived need to achieve an illusory worldwide consensus among states
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