OECD Taxation Working Papers N. 44 – TAXING VEHICLES, FUELS, AND ROAD USE: OPPORTUNITIES FOR IMPROVING TRANSPORT TAX PRACTICE

OECD Taxation Working Papers N. 44 – TAXING VEHICLES, FUELS, AND ROAD USE: OPPORTUNITIES FOR IMPROVING TRANSPORT TAX PRACTICE. This paper discusses the main external costs related to road transport and the design of taxes to manage them. It provides an overview of evolving tax practice in the European Union and the United States and identifies opportunities for better alignment of transport taxes with external costs. There is considerable scope for improving transport tax practice, notably by increasing the use of taxes based on road use. Distance charges offer great promise in delivering more efficient road transport. In heavily congested areas, targeted charges are a cost-effective way of reducing congestion. Fiscal objectives provide an impetus for change as improving vehicle fuel efficiency and fleet penetration of alternative fuel vehicles erode traditional tax bases, particularly those relating to fossil fuel use. A gradual shift from an energy-based approach towards distance-based transport taxes has the potential to establish a stable tax base in the road transport sector in the long run. By Kurt van Dender.

OECD Taxation Working Papers N. 45 – THE POTENTIAL OF TAX MICRODATA FOR TAX POLICY

OECD Taxation Working Papers N. 45 – THE POTENTIAL OF TAX MICRODATA FOR TAX POLICY. This paper explores one distinctive form of the ‘big data’ of economics – individual tax record microdata – and its potential for tax policy analysis. The paper draws on OECD collaborations with Slovenia and Ireland in 2018 where tax microdata was used. Most empirical economics is based on survey data. However, the current trend of low and falling response rates has placed a question mark over the future value of survey practice generally. By contrast, this paper discusses the increasing use of tax microdata in economic research and the new types of policy analysis made possible by it. In the future, best-practice tax policy analysis is likely to combine tax microdata with survey and national account data. The advantages of these combined data will be important for policymakers to understand and address future policy challenges including protecting tax revenues in an era of population ageing and supporting fairness given the changing nature of economic mobility.  By Seán Kennedy.

OECD Taxation Working Papers N. 39 – SIMPLIFIED REGISTRATION AND COLLECTION MECHANISMS FOR TAXPAYERS THAT ARE NOT LOCATED IN THE JURISDICTION OF TAXATION: A REVIEW AND ASSESSMENT

OECD Taxation Working Papers N. 39 – SIMPLIFIED REGISTRATION AND COLLECTION MECHANISMS FOR TAXPAYERS THAT ARE NOT LOCATED IN THE JURISDICTION OF TAXATION: A REVIEW AND ASSESSMENT. This paper reviews and evaluates the efficacy of simplified tax registration and collection mechanisms for securing compliance of taxpayers over which the jurisdiction with taxing rights has limited or no authority to effectively enforce a tax collection or other compliance obligation. Although the experience of jurisdictions in addressing this problem has involved primarily consumption taxes, that experience, and the lessons that can be learned from it, are applicable as well to other tax regimes that confront the same problem. Many jurisdictions have implemented (and are in the process of implementing) simplified registration and collection regimes in the business-to-consumer (B2C) context for taxpayers that are not located in the jurisdiction of taxation. Although the evidence regarding the performance of the simplified regimes adopted by jurisdictions is still quite limited, the best available evidence at present (in the European Union) indicates that simplified regimes can work well in practice and a high level of compliance can be achieved since there is a concentration of the overwhelming proportion of the revenues at stake in a relatively small proportion of large businesses and since the compliance burden has been reduced as far as possible. It also indicates that the adoption of thresholds may be na appropriate solution to avoid imposing a disproportionate administrative burden with respect to the collection of tax from small and micro-businesses in light of the relatively modest amount of revenues at stake and that a good communications strategy is essential to the success of a simplified regime (including appropriate lead time for implementation). In sum, simplified registration and collection regimes represent an effective approach to securing tax compliance when the jurisdiction has limited or no authority effectively to enforce a tax collection or other compliance obligation upon a taxpayer. Hellerstein, W., S. Buydens and D. Koulouri (2018).

OECD – COMPILATION OF COMMENTS. PUBLIC COMMENTS ON THE DISCUSSION DRAFT ON WHAT IS DRIVING TAX MORALE?

OECD – COMPILATION OF COMMENTS. PUBLIC COMMENTS ON THE DISCUSSION DRAFT ON WHAT IS DRIVING TAX MORALE? These comments have been prepared by the BEPS Monitoring Group (BMG). The BMG is a network of experts on various aspects of international tax, set up by a number of civil society organizations which research and campaign for tax justice including the Global Alliance for Tax Justice, Red de Justicia Fiscal de America Latina y el Caribe, Tax Justice Network, Christian Aid, Action Aid, Oxfam, and Tax Research UK. These comments have not been approved in advance by these organizations, which do not necessarily accept every detail or specific point made here, but they support the work of the BMG and endorse its general perspectives. They have been drafted by Sol Picciotto, with contributions from Jeffery Kadet, Tovony Randriamanalina and Attiya Waris. We appreciate the opportunity to provide these comments and are happy for them to be published. Introduction. This discussion draft (the DD) updates previous OECD research of 2013 on tax morale in individuals and, additionally presents a new business section, using data from a survey of multinational enterprises (MNEs) conducted in 2016 to discuss business tax morale in developing countries. Our concern is international corporate taxation especially in relation to developing countries. In our view, the inclusion of the data from the 2016 survey of business into the work on tax morale of individuals is unhelpful and makes the draft report incoherent. In addition, there are surprising omissions from the report, particularly the lack of any discussion of the attitudes to tax of key groups such as wealthy people and tax advisers. Our comments will focus mainly on the second chapter on business, and especially its policy recommendations. More generally, however, it is of key importance in our view to understand that the motivation to pay tax is not ‘intrinsic’, at least in the sense of some kind of innate motivation of individuals. Tax is at the heart of the social contract or solidarity of citizens of a state, and there is plenty of evidence that its legitimacy, and hence the willingness of citizens to pay it, rests on notions of tax fairness. We are surprised that these issues are largely ignored in this DD, and will comment further on them below. 15 MAY 2019.

OECD – 2019 Progress Report on Tax Certainty. IMF/OECD Report for the G20 Finance Ministers andCentral BankGovernors

OECD – 2019 Progress Report on Tax Certainty. IMF/OECD Report for the G20 Finance Ministers andCentral BankGovernors. Tax certainty for taxpayers is an important component of investment decisions and can have significant impacts on economic growth. In 2016, the G20 Leaders called on the International Monetary Fund (the IMF) and the Organisation for Economic Co-operation and Development (OECD) to work on this issue. Following an initial report in 2017 (the 2017 Report1) and an update in 2018 (the 2018 Update2), the G20 Leaders re-iterated the importance of this issue, noting their continued support for enhanced tax certainty. The Buenos Aires Action Plan called for “the OECD and the IMF to report to Finance Ministers and Central Bank Governors in 2019 on progress made on tax certainty”. This report provides an update on the work on tax certainty issues and shows clearly that this remains a priority issue for taxpayers and tax administrations alike. Moreover, the work on tax certainty covers a wide variety of issues in both tax policy and tax administration, notably:

FORUM ON TAX ADMINISTRATION. International Compliance Assurance Programme Pilot Handbook 2.0

FORUM ON TAX ADMINISTRATION. International Compliance Assurance Programme Pilot Handbook 2.0. The International Compliance Assurance Programme (ICAP) is a voluntary programme for a multilateral co-operative risk assessment and assurance process. It is designed to be an efficient, effective and co-ordinated approach to provide multinational groups (MNEs) willing to engage actively, openly and in a fully transparent manner with increased tax certainty with respect to certain of their activities and transactions. ICAP does not provide an MNE with legal certainty as may be achieved, for example, through an advance pricing arrangement (APA). It does however give comfort and assurance where tax administrations participating in an MNE’s risk assessment consider a covered risk to be low risk. Where an area is identified as needing further attention, work conducted in ICAP can improve the efficiency of actions taken outside the programme, if needed. This handbook contains information on a second ICAP pilot (ICAP 2.0), which builds on the first pilot, described later in this introduction. This handbook remains a working document and will be revised based on the experience of participating tax administrations and MNEs.

DIRETIVA (UE) 2017/1852, de 10 de outubro de 2017, relativa aos mecanismos de resolução de litígios em matéria fiscal na União Europeia

DIRETIVA (UE) 2017/1852, de 10 de outubro de 2017, relativa aos mecanismos de resolução de litígios em matéria fiscal na União Europeia. Considerando o seguinte: (1) As situações em que diferentes Estados-Membros interpretam ou aplicam de forma diferente as disposições dos acordos e convenções fiscais bilaterais e da Convenção relativa à eliminação da dupla tributação em caso de correção de lucros entre empresas associadas (90/436/CEE) «Convenção de Arbitragem da União») podem criar sérios obstáculos fiscais às empresas que exercem atividades transfronteiras. Criam uma carga fiscal excessiva para as empresas e são suscetíveis de causar distorções e ineficiências económicas, e de ter um impacto negativo no investimento transfronteiras e no crescimento. (2) Por esse motivo, é necessário que existam mecanismos na União que garantam uma resolução eficaz dos litígios relativos à interpretação e aplicação de tais convenções fiscais bilaterais e da Convenção de Arbitragem da União, em especial no que se refere aos litígios que dão origem a uma dupla tributação.

OECD Taxation Working Papers N. 29: THE IMPACT OF TAX AND BENEFIT SYSTEMS ON THE WORKFORCE PARTICIPATION INCENTIVES OF WOMEN

OECD Taxation Working Papers N. 29: THE IMPACT OF TAX AND BENEFIT SYSTEMS ON THE WORKFORCE PARTICIPATION INCENTIVES OF WOMEN. This paper examines the impact of tax and benefit systems on the incentives for second earners to enter formal employment. The paper highlights how various tax design features create greater participation disincentives for second earners than for primary earners or single individuals. As second earners in OECD countries are more often women, these greater disincentives create significant gender-equity concerns. As second earners are also typically highly responsive to work disincentives, these features are likely to negatively impact economic growth. These disincentives stem from a range of policies including the choice of family-based rather than individual-based taxation, the use of dependent spouse tax credits and allowances, and the use of tax credits and benefits based on family rather than individual income. Reform options to address these issues will depend on countries’ existing tax policy design choices. For countries where individual-based taxation is combined with some family-based provisions, reform of these familybased provisions to lessen their impact on second earner work disincentives may be warranted. For countries with family-based tax systems, the introduction of some individual-based provisions could be considered to mitigate the negative effects of family-based taxation on second earner work incentives.Tax and benefit systems can affect men and women differently. Explicit gender biases – where tax and benefit provisions are legally linked to gender – are increasingly rare across OECD countries. However, implicit biases – where tax and benefit systems interact with gender differences in patterns of behaviour and income – remain common. Perhaps the most common implicit gender bias in tax and benefit systems is the greater disincentive often created by tax provisions for second earners – who tend to be women – to participate in the workforce as compared to primary earners or single individuals. This paper examines how tax provisions can exacerbate these disincentives; quantifies the total disincentives created by the tax and benefit systems; and discusses potential tax policy reform options. While tax and benefit systems will also have an impact on the number of hours a second earner works once in employment, and on the mix of hours worked by partners in a family, the focus of this paper is solely on the decision whether or not to enter employment. Concern regarding the impact of tax and benefit systems on second earner work incentives is not limited to gender equity. There are also significant implications for efficiency, income inequality and inclusive growth. Empirical evidence shows that second earners tend to be highly responsive to work disincentives (OECD, 2011), and hence the imposition of substantial disincentives is likely to result in significantly lower participation by second earners than would otherwise occur. This is evidenced by the comparatively lower participation rates of women than men. Reducing disincentives can not only lower these distortions to economic behaviour, but will have a significant positive impact on GDP growth. Increasing second earner participation is also linked to lower income inequality (OECD, 2015) and lower child poverty (Del Boca, 2015). It will also be crucial in helping to address the demographic challenges associated with population aging in most countries. The paper first focuses solely on the tax system. While all income taxes can be expected to discourage work2 , the specific design of an income tax system can affect the exact incentives workers face. (…)  Alastair Thomas, Pierce O’Reilly.

OECD Taxation Working Papers N. 24 – Taxation of Knowledge-Based Capital: Non-R&D Investments, Average Effective Tax Rates, Internal Vs. External KBC Development and Tax Limitations

OECD Taxation Working Papers N. 24 – Taxation of Knowledge-Based Capital: Non-R&D Investments, Average Effective Tax Rates, Internal Vs. External KBC Development and Tax Limitations. This paper extends the tax analysis of knowledge-based capital (KBC) in several dimensions. The paper analyses non-R&D KBC: computer software, architectural and engineering designs, and economic competencies which account for over 70% of total KBC.