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2. 2 Finance for Development

3. 3 Tax and Development “taxes provide the long term financial platform for sustainable development. Taxes are the lifeblood of state services.” Angel Gurría, OECD Secretary-General “the correct spelling of the word ‘aid’ is ‘T-A-X’ Trevor Manuel, Former South African Finance Minister

4. 4 Challenges to Raising Revenue Tax Collection The Informal Sector Investment Climate Power and Knowledge Asymmetry Complexity of MNC Structures and Minimisation of Tax Payments Financial Secrecy

5. 5 Tax Dodging??

6. 6 ACOM BCOM CCOM Transfer Pricing 30% Tax Rate 40% Tax Rate 0% Tax Rate

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9. 9 £50 £50 £100 £50 £100 £100 £50 0 0 0% 30% 30% £0 £0 £0

10. 10 An International Accounting Standard to require that companies report economic activity and tax paid on a country-by-country basis. This would show tax authorities and civil society where the major risks of abuse are, and help them to address these.

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12. 12 An automatic exchange of tax information between all jurisdictions. This would make it impossible for tax havens to hide the identity of companies and individuals that own assets and income streams via their jurisdictions.

13. 13 “And at the London Summit I can tell you that we will also set down new measures to crack down on those tax havens that siphon money from developing countries, money that could otherwise be spent on bed nets, vaccinations, economic development and jobs.”

14. 14 BENEFITS TO BOLIVIA An additional US$1.57 billion raised in royalties and taxes in Bolivia in 2007, which funds, among other things: universal state pensions for everyone over 60, which guarantees an income for older people universal grants for primary-school children, which pay for books and uniforms, and has increased attendance rates, especially among girls in rural areas nationwide school breakfasts for primary-school children, which guarantee all school children at least one meal a day.

15. 15 VALENTINA’S STORY… Talking about the pension, Valentina says: ‘It’s a big help for us. Sometimes we don’t have the money to pay the electricity bill, or the water or bus fares. Now we can pay for these things.’

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