What measures are Denmark taking to prevent capital flight and support tax mobilisation? Presentation by Steen Lohmann Pou...
The problem of capital flight and tax evasion <ul><li>Estimates of proceeds from criminal activities, corruption and tax e...
The Legal Framework – OECD and UN <ul><li>OECD’s  Global Forum on Transparency and Exchange of Information: </li></ul><ul>...
The EU framework <ul><li>Savings Tax Directive (2003) </li></ul><ul><ul><ul><li>Coverage: only taxation of savings income ...
Progress in G20 <ul><li>G20 declarations call for: </li></ul><ul><ul><ul><li>the end of bank secrecy </li></ul></ul></ul><...
Multilateral initiatives <ul><li>OECD: </li></ul><ul><ul><ul><li>multilateral negotiations of bilateral agreements on exch...
OECD – ”White” list, October 20th, 2009 San Marino Japan Denmark Russian Federation Italy Czech Republic Portugal Israel C...
OECD – ”Grey” list, October 14th, 2009 (0) – (2) (0) (0) – (11) (0) – (2) 2009 2009 2009 2009 Malaysia Phillipines Singapo...
What measures have Denmark taken? <ul><li>Bilaterally -  recent revision of agreements with Switzerland, Austria, Luxembou...
The international work program: <ul><li>EU   </li></ul><ul><ul><ul><li>Anti-fraud agreements with third countries </li></u...
The way forward for developing countries? <ul><li>Proposals: </li></ul><ul><li>Country-by-country reporting? </li></ul><ul...
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Steen Lohmann Poulsen, Head of Division for International Economic Coorperation, Taxation and Financial Markets, Ministry of Finance: What measures is Denmark taking to prevent capital flight and support tax mobilisation?

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Steen Lohmann Poulsen, Head of Division for International Economic Coorperation, Taxation and
Financial Markets, Ministry of Finance: What measures is Denmark taking to prevent capital flight and support tax mobilisation?

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Steen Lohmann Poulsen, Head of Division for International Economic Coorperation, Taxation and Financial Markets, Ministry of Finance: What measures is Denmark taking to prevent capital flight and support tax mobilisation?

  1. 1. What measures are Denmark taking to prevent capital flight and support tax mobilisation? Presentation by Steen Lohmann Poulsen – Danish Ministry of Finance
  2. 2. The problem of capital flight and tax evasion <ul><li>Estimates of proceeds from criminal activities, corruption and tax evasion in developing and transition economies range from 500-800 billion US dollars per year . </li></ul><ul><li>Of this, roughly 250 billion US dollars per year is from tax evasion. </li></ul>
  3. 3. The Legal Framework – OECD and UN <ul><li>OECD’s Global Forum on Transparency and Exchange of Information: </li></ul><ul><ul><ul><li>Exchange of information on request </li></ul></ul></ul><ul><ul><ul><li>No restriction on information exchange due to bank secrecy </li></ul></ul></ul><ul><ul><ul><li>2 OECD models – double taxation and exchange of information (TIEA) </li></ul></ul></ul><ul><li>UN model double taxation convention </li></ul><ul><ul><ul><li>follows OECD standards to a large extent </li></ul></ul></ul><ul><ul><ul><li>targeted bilateral agreements between developed and developing countries </li></ul></ul></ul>
  4. 4. The EU framework <ul><li>Savings Tax Directive (2003) </li></ul><ul><ul><ul><li>Coverage: only taxation of savings income – interest payments </li></ul></ul></ul><ul><ul><ul><li>Automatic exchange of information. Transition period for Luxembourg, Austria and Belgium </li></ul></ul></ul><ul><ul><ul><li>Corresponding agreements with Switzerland, Liechtenstein, Monaco, San Marino and Andorra (withholding tax) </li></ul></ul></ul>
  5. 5. Progress in G20 <ul><li>G20 declarations call for: </li></ul><ul><ul><ul><li>the end of bank secrecy </li></ul></ul></ul><ul><ul><ul><li>adherement to international standards for information exchange </li></ul></ul></ul><ul><ul><ul><li>- expanding the OECD Global Forum to also include developing countries </li></ul></ul></ul><ul><ul><ul><li>countermeasures against tax havens from March 2010 </li></ul></ul></ul>
  6. 6. Multilateral initiatives <ul><li>OECD: </li></ul><ul><ul><ul><li>multilateral negotiations of bilateral agreements on exchange of information </li></ul></ul></ul><ul><ul><ul><li>opening the Convention on Mutual Administrative Assistance in Tax Matters to developing country participation - multilateral agreement drawn up by Council of Europe and OECD which covers: </li></ul></ul></ul><ul><ul><ul><ul><li>information exchange on request </li></ul></ul></ul></ul><ul><ul><ul><ul><li>indirect and direct taxation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>all legal persons (both individuals and companies) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>upcoming revision: remove restrictions on bank secrecy </li></ul></ul></ul></ul>
  7. 7. OECD – ”White” list, October 20th, 2009 San Marino Japan Denmark Russian Federation Italy Czech Republic Portugal Israel Cyprus US Virgin Islands Poland Isle of Man China United States Norway Ireland Cayman Islands United Kingdom New Zealand India Canada United Arab Emirates Netherlands Antilles Iceland British Virgin Islands Turkey Netherlands Hungary Bermuda Switzerland Monaco Guernsey Belgium Sweden Mexico Greece Barbados Spain Mauritius Gibraltar Bahrain South Africa Malta Germany Austria Slovenia Luxembourg France Australia Slovak Republic Korea Finland Aruba Seychelles Jersey Estonia Argentina Jurisdictions that have substantially implemented the internationally agreed tax standard
  8. 8. OECD – ”Grey” list, October 14th, 2009 (0) – (2) (0) (0) – (11) (0) – (2) 2009 2009 2009 2009 Malaysia Phillipines Singapore Uruguay (5) – (6) (0) (0) (0) 2009 2009 2009 2009 Brunei Chile Costa Rica Guatemala Other Financial Centres (0) (0) (0) (1) – (5) (0) (0) – (5) (0) – (3) (0) – (5) (0) 2003 2002 2002 2002 2002 2002 2002 2002 2003 Nauru Niue Panama St Kitts and Nevis St Lucia St Vincent and the Grenadines Samoa Turks and Caicos Islands Vanuatu (0) – (5) (4) (7) – (9) (1) – (3) (0) (0) – (1) (1) (1) (0) (1) – (10) (1) (0) 2009 2002 2002 2002 2002 2002 2002 2002 2007 2009 2007 2002 Andorra Anguilla Antigua and Barbuda Bahamas Belize Cook Islands Dominica Grenada Liberia Liechtenstein Marshall Islands Montserrat Tax havens Number of agreements Year of commitment Jurisdiction Number of agreements Year of commitment Jurisdiction Jurisdictions that have committed to the internationally agreed tax standard, but have not yet substantially implemented
  9. 9. What measures have Denmark taken? <ul><li>Bilaterally - recent revision of agreements with Switzerland, Austria, Luxembourg and Singapore in accordance with the OECD standards </li></ul><ul><li>Nordic cooperation - bilateral information exchange agreements within a multilateral framework. Agreements with Jersey, Guernsey, Isle of Man, Cayman Islands, Bermuda, the Virgin Islands, Aruba og the Dutch Antilles. </li></ul><ul><li>EU - pushing for speedy adoption of a revised Savings Tax Directive and anti-fraud agreements with Liechtenstein and other third countries </li></ul><ul><li>OECD - supports work in the Global Forum </li></ul>
  10. 10. The international work program: <ul><li>EU </li></ul><ul><ul><ul><li>Anti-fraud agreements with third countries </li></ul></ul></ul><ul><ul><ul><li>Revision of the Savings Tax Directive to increase coverage </li></ul></ul></ul><ul><li>OECD - responding to G20 call to make it easier for developing countries to benefit from tax cooperation – report expected prior to G20 Finance Ministers meeting in November </li></ul><ul><li>Denmark – continuing to push for progress in the EU and work for more tax agreements within the Nordic framework </li></ul>
  11. 11. The way forward for developing countries? <ul><li>Proposals: </li></ul><ul><li>Country-by-country reporting? </li></ul><ul><li>Multilateral agreements? </li></ul>

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