ICRICT-G-24 VIRTUAL DEBATE

“A global tax deal: a victory for whom?”

7 October  9.00- 10.15 am EST

Live streamed on Youtube: https://youtu.be/LFs1pSf2H98.

Martín Guzmán, the Minister of Economy of Argentina -which is part of the G-24, a group of countries from the Global South –will discuss who is going to benefit from the global tax deal with leading economists Jayati Ghosh, José Antonio Ocampo, Joseph E. Stiglitz, all members of ICRICT (Independent Commission for the Reform of International Corporate Taxation).

The G20 announced on 1 July a “historic” deal to reform taxation of multinationals to ensure the largest and most profitable multinationals pay their fair share and introduce a global minimum tax to end the race to the bottom. The agreement, so far, only serves the interests of a handful of countries, the richest. G7 nations would be set to gain 60% of extra revenue generated by the new tax agreement despite having just 10% of the global population. Proposals by G24 members reflecting developing countries positions have been systematically excluded so far.

An agreement cannot be sustainable if the concerns of the developing countries are adequately addressed and ensure meaningful revenue for them. The G-24 has recently issued a statement outlining its key negotiating demands and stressing that without an increased reallocation of taxing rights to developing countries “the solution if any, shall be suboptimal and shall not be sustainable even in the medium run”.

The deal is not over, 140 jurisdictions will be meeting at the OECD on Friday to discuss the final proposal to be presented to G20 Ministers of Finance in meeting on 12-13 October. ICRICT considers that a comprehensive reform would see ALL multinationals’ worldwide profits taxed in line with their real activities in each country - that is, by allocating global corporate profits of multinationals to different countries on a formulaic basis, according to the key factors that generate profit: employment, sales, and assets AND an ambitious 25% global effective minimum tax on multinationals, putting an end to harmful tax competition between countries and reducing the incentive

for multinationals to shift profits to tax havens.

When: The virtual debate will be held on Thursday 7 October, 9.-10.15am EST (Washington DC), 9-11.15pm (Buenos Aires), 3 pm-4.15 pm CET (Paris),

Where: The event will be livestreamed on Youtube at: https://youtu.be/LFs1pSf2H98.

Who: Martín Guzmán, Minister of the Economy, Argentina, Jose Antonio Ocampo, Professor of Economics, Colombia University and ICRICT Chair, Joseph E. Stiglitz, Professor of Economics at Columbia University and ICRICT member and Jayati Ghosh, Professor of Economics, University of Massachusetts, and ICRICT Commissioner. The debate will be moderated by Alexandra Haas, Executive Director, Oxfam Mexico

Read our latest report, “The global pandemic, sustainable economic recovery and international taxation”.