Yes. There is a case for strengthening the work of the UN Tax Committee, but confusing illicit flows with tax evasion with base erosion and profit shifting is not it!https://twitter.com/DanNeidle/status/1034778480137986049 …
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Replying to @MForstater
And of course you and others had warned that the "illicit" confusion would lead to policy confusion. Sorry to see that seems to be happening.
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Replying to @DanNeidle
@abdulmc - Black money is a real issue, but not same as BEPS & FYI@GFI_Tweets have since revised down "misinvoicing" figure for India to $8-18 bn (I'd be careful with all these figures though https://www.cgdev.org/blog/illicit-financial-flows-and-trade-misinvoicing-time-reassess …)1 reply 0 retweets 0 likes -
Okay, tax avoidance/abuse/dodging/planning/manipulation/malpractice/whatever else pleases you. Frankly don't care too much over quibbling over semantics beyond a point. Thanks for the data update though, will check that out.
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I'm sorry but you should care. It's not semantics. The way people evade tax is completely different from the way they erode the base. The techniques you adopt to stop evasion are different from techniques to stop erosion.
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Here's a question - what would you call transfer mispricing? Base erosion or tax evasion?
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NB: the OECD TP guidelines don't use "transfer mispricing" as a term. The UN Manual does use it as a short-hand for non-arms length prices. This is what they say (i.e. they warn against using the term to conflate issues and behaviours)pic.twitter.com/Pr9Z3njVIh
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The kind of thing that the estimates of "illicit financial flows" cover; trade based money laundering, technical smuggling, customs fraud etc... are something else again.
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And BEPS and OECD tax treaties are entirely irrelevant to these.
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