[ParlTrack]

Motion for a resolution
Recital C

C. whereas the major forms of illicit financial flow and capital flight especially include: transfer mispricing~~; round-tripping; tax incentives and tax competition~~ between countries to attract FDI; opaque and disadvantageous investment protocols,

2010/11/30
Committee: DEVE

Wolf KLINZ

Motion for a resolution
Recital C a (new)

Ca. whereas round-tripping, tax incentives and tax competition between developing countries often lead to detrimental results which are evident when countries are "selling" their tax systems, and companies are "buying" into them, in a marketplace analogous to competition between companies,

2010/11/30
Committee: DEVE

Wolf KLINZ

Motion for a resolution
Recital D a (new)

Da. whereas a lot of developing countries are missing out on the commodity boom by failing to receive a decent share of mineral royalties which are justified,

2010/11/30
Committee: DEVE

Wolf KLINZ

Motion for a resolution
Recital D b (new)

Db. whereas many developing countries do not even attain a minimum tax level which would be necessary to fund public services and international commitments like poverty reduction,

2010/11/30
Committee: DEVE

Wolf KLINZ

Motion for a resolution
Recital D c (new)

Dc. whereas tax provides a source of income that is potentially more stable and sustainable than aid flow and fosters the ownership of the respective countries in a better way,

2010/11/30
Committee: DEVE

Wolf KLINZ

Motion for a resolution
Recital D d (new)

Dd. whereas the reporting on a consolidated base makes it often difficult to identify companies to be taxed and to determine the right tax level due to their complex corporate structures and the distribution of economic activity between them,

2010/11/30
Committee: DEVE

Wolf KLINZ

Motion for a resolution
Recital D f (new)

Df. whereas so called vulture funds, often based in tax havens, increasingly buy up the debt of developing countries at a huge discount and afterwards sue for the original amount of debt (frequently with interest and penalty fees) and in doing so, restrict to a substantial degree the extent to which developing countries can act thanks to their additional tax revenues,

2010/11/30
Committee: DEVE

Wolf KLINZ

Motion for a resolution
Recital D g (new)

Dg. whereas there are no laws that cap the amount of profits that a vulture fund can collect through litigating against developing countries to collect default debt and whereas there are no regulatory structures that disclose who vulture funds are and also how much they paid for this debt that was previously considered worthless,

2010/11/30
Committee: DEVE

Wolf KLINZ

Motion for a resolution
Recital D h (new)

Dh. whereas in a lot of developing countries there exists multiple corporate income tax rates based not only on income and dividends, but also on business sectors, meaning that the sectoral allocation of resources is distorted by differences in tax rates,

2010/11/30
Committee: DEVE

Wolf KLINZ

Motion for a resolution
Recital D i (new)

Di. whereas tax compliance shall be defined as seeking to pay at the right place, at the right time, where "right" means that the economic substance of the transactions undertaken coincides with the place and form in which they are reported for taxation purposes,

2010/11/30
Committee: DEVE

Wolf KLINZ

Motion for a resolution
Paragraph 3

3. Notes with concern that the tax system in many poor countries remains characterised by extremely narrow tax bases; tax exemptions for the elite; corporate tax holidays providing a strong incentive for tax avoidance, as taxed enterprises can enter into economic relationships with exempt ones to shift their profits, massive revenues from natural resources going unaccounted ~~for, and~~; high illicit capital flows related to massive tax evasion;

2010/11/30
Committee: DEVE

Wolf KLINZ

Motion for a resolution
Paragraph 5

~~5. Underlines that globalisation exacerbates the fiscal problems of developing countries;~~deleted

2010/11/30
Committee: DEVE

Wolf KLINZ

Motion for a resolution
Paragraph 8 a (new)

8a. Underlines that the administrative costs especially for a multiple-rate VAT system might be to too high for developing countries whose tax authorities are not equipped with the necessary financial and human resources and therefore shall be carefully scrutinized; believes that in such cases excises shall be highly selective, narrowly targeting a few goods mainly on the grounds that their consumption entails negative externalities on society and which are usually inelastic in demand (tobacco, alcohol et cetera); calls in case of limitation also for the identification and taxation of those companies which may account for increased tax revenue (for example those engaged in the extraction of raw material);

2010/11/30
Committee: DEVE

Wolf KLINZ

Motion for a resolution
Paragraph 9 a (new)

9a. Calls to concentrate on the principles of neutrality, equality and simplicity with regard to tax systems in developing countries. This shall be achieved by (a) a tax that does not take up a greater share of poor people`s income but a greater proportion of the taxpayer`s income or wealth as it increases. (b) a tax that does not discriminate on the basis of gender, sexual orientation, type of household, citizenship or civil status. (c) a clear, simple and transparent tax system which excludes different ways of undesirable interpretations of tax laws with the aim to gain massive tax reductions at the expense of social spending. (d) an identical treatment for tax purposes of true gains and true losses of any given source of income, meaning that the gains are taxable and the losses deductible. (e) a level of taxation that is robustly linked to different stages of economic development. (f) the unification of multiple corporate income tax rates;

2010/11/30
Committee: DEVE

Wolf KLINZ

Motion for a resolution
Paragraph 10 a (new)

10a. Calls to fight against illegitimate transfer price manipulation (TPM) and for the review of global tax rules which go beyond the comparable profits method, in case that there might be other more promising alternatives which adress the problem of misprising more properly; stresses that the EU, the G20, the EU and the WTO in general shall concentrate their efforts on approaches that rely on the so called "arms length principle (ALP) stating that tax-relevant transactions must be under the same conditions as those which would be made between independent enterprises;

2010/11/30
Committee: DEVE

Wolf KLINZ

Motion for a resolution
Paragraph 13 a (new)

13a. Underlines the importance of a country-by-country reporting and requests that negotiations in this field be intensified. a) governments and international groupings (including the G20 and United Nations) should support a country-by- country financial reporting standard, and formally request the International Accounting Standards Board to adopt it; b) the OECD should continue its feasibility study of country-by-country reporting, and report back to both the G20 and the UN during 2011; c) the International Accounting Standards Board should adopt a new standard that includes country by country reporting; d) civil society and the media should in future make use of the information disclosed under country-by-country reporting to hold governments and multinational companies to account;

2010/11/30
Committee: DEVE

Wolf KLINZ

Motion for a resolution
Paragraph 18 a (new)

18a. Calls for a international disclosure of the structures of vulture funds to identify them and ban their activities;

2010/11/30
Committee: DEVE

Wolf KLINZ

Motion for a resolution
Paragraph 18 b (new)

18b. Stresses that tax administrations in developing countries need to cooperate if they are not part of the respective ministry of finance, especially over tax and budgetary policy by ways that do not stimulate rivalry and jealousy, but foster the nature of good relationship and good governance in tax matters;

2010/11/30
Committee: DEVE

Wolf KLINZ

Motion for a resolution
Paragraph 18 c (new)

18c. Calls for the establishment or (in case that they might be already in place) institutional improvement of so called (semi-) autonomous revenue authorities (ARA), through adequate systems of checks and balances, to avoid that tax authorities are abused by self-serving political decisions, used as a private source of income or as an instrument to intimidate political opponents;

2010/11/30
Committee: DEVE

Wolf KLINZ

Motion for a resolution
Paragraph 18 d (new)

18d. Underlines in this context that the high status and managerial autonomy of ARAs shall be offset by pluralistic governance arrangements which make sure; (a) that an ARA has a guaranteed budget that can not be changed by the government power; (b) that its status responsibilities and powers are enshrined in law and can be protected through the police and the court; (c) that appointments to the supervisory board (to be established) are made by a variety of public agents (different ministries, business and lawyer associations); (d) that appointments to the supervisory board are of long-term and fixed duration; (e) and that managerial and operational staff are answerable only to the supervisory board;

2010/11/30
Committee: DEVE

20 Amendments of Wolf KLINZ related to 2010/2102(INI)

ParlTrack - 2011-2024