Oxford University Centre for Business Taxation
Summer conference 2016: Corporation tax for the 21st century
Corporation tax for the 21st Century
Joint with Max Planck Institute for Tax Law and Public Finance, Munich
Following the public and political outcry at the tax planning practices of some well-known multinationals, the OECD set up its BEPS project in 2013; this has now reported and proposed a raft of reforms. However, the limitations of the project were clear from the start. The project lacked any serious analysis of the fundamental aims and rationale for the taxation of multinationals’ profit, and in particular where profit should be taxed. The BEPS proposals address specific issues, or loopholes, but the fundamental structural weaknesses in the system will remain. For this reason, it is unlikely that such an approach can generate a stable international tax system.
Towards the end of 2013 Professor Michael Devereux invited an international group of economists and lawyers to meet to reconsider the fundamentals of the system, and to propose more considered reforms. The group, which has been working and meeting together since then, has two main goals. The first is to set out and examine fundamental issues of principle and practice in the taxation of business profit and the allocation of taxing rights over such profit amongst countries, paying attention to the interests and circumstances of advanced and developing countries. The second is to evaluate the existing system and potential reform options.
The group has considered a number of reform options, ranging from those requiring relatively marginal change to radically different systems. It has considered two options in some detail: (i) a Residual Profit Allocation system and (ii) a Destination Based Cash-Flow Tax. A common feature is that they assign taxing rights partly or fully to the location of relatively immobile factors: shareholders or consumers.
The Oxford University Centre for Business Taxation’s annual summer conference, held on 27 June, discussed these issues. Members of the group presented the group’s ideas to date, and leading figures from business, academia and the media responded and gave their own views on the future development of international corporation tax.
|09:00-09:30||Registration and coffee|
The need for reform, and current policy proposals
Michael Devereux, Oxford University Centre for Business Taxation
Chair: John Vella, Oxford University Centre for Business Taxation
Michael Graetz, Columbia University and Yale University
Residual Profit Allocation Proposal
Chair: Wolfgang Schön, Max Planck Institute for Tax Law and Public Finance, Munich
Paul Oosterhuis, Skadden Arps LLP
Destination Based Cash Flow Tax Proposal, and developing countries
Chair: Judith Freedman, University of Oxford
Michael Devereux, Oxford University Centre for Business Taxation View slides
Chair: Michael Devereux, Oxford University Centre for Business Taxation (Chair)
Ian Brimicombe, AstraZeneca Plc
|17:30-18:30||Close and drinks reception|