For years, multinationals have publicly complained that getting rid of tax havens would lead to "double taxation" ... having to pay tax in two countries. Organizations like the OECD have been sympathetic and silent. Problem was, only activists were talking about the bigger problem of "double non-taxation." Paying tax nowhere. A practice that drains billions of tax dollars in national budgets including Canada's.
This month though the OECD released a report on corporate taxation. It analyzes the effectiveness of the thousands of tax treaties in place among hundreds of countries. That's a big chew. But in a recent blog, Tax Justice Network financial wizard Richard Murphy was delighted to find that the report broke taboo and uttered the phrase "double non-taxation". Progress?
Murphy and C4TF Executive Director Dennis Howlett will be testifying before the House of Commons Finance Committee hearings on tax havens on Thursday, Feb 14.