Tax policy in the 21st century : new concepts for old problems

Abstract

Tax Policy issues have moved up the global political agenda. Governments and citizens are increasingly concerned that Multinational Enterprises (MNEs) and High Net Worth Individuals are not paying their fair share of taxes. MNEs are increasingly concerned that the OECD projects on Base Erosion and Profit Shifting will result in new tax barriers being erected to cross border trade. At the same time many governments around the world are looking for higher tax revenues as part of their efforts to reduce budget deficits, but to do this in ways which reduce the complexity of tax systems and reduce the growing inequalities in income and wealth. The international tax community is facing the challenge of how to adapt tax systems which were developed in a “bricks and mortar” economy, where there were significant barriers to international trade, to a truly global economy where individuals and companies can use modern communication technologies to exploit the new opportunities opened up in this borderless world and where the wealth of companies lie very much in what they know rather than in the physical products they produce. This is the context in which the Global Governance Programme of the European University Institute and the Institute for Austrian and International Tax Law, WU (Vienna University of Economics and Business) created a joint project on taxation and governance. As part of this project a High-Level Policy Seminar was organised in Florence on 11 July 2013. The seminar, which was held under the Chatham House rule, brought together politicians, senior officials, business representatives and academics to discuss “Tax Policy in 21st Century: New Concepts for Old Problems”.