A year on from the Paradise Papers, the world has not made sufficient progress to tackle the secrecy that facilitates the hiding of wealth in tax havens. With 10% of global GDP estimated to be hidden in tax havens, and inequality rising both in developed and developing countries, the lack of progress is worrying, according to the Independent Commission for the Reform of International Corporate Taxation (ICRICT).
Current reforms have barely scratched the surface of the issue and the public are growing tired of weak reforms and partial answers. If countries with real political clout on the world stage continue to focus only on jurisdictions that are smaller in size, while ignoring obvious jurisdictions that ought to be part of the conversation, the result will be continued failure.
If multilateral institutions like the UN, EU and OECD are serious about tackling this problem, then it is time to discuss and coordinate a move towards the proposals supported by ICRICT such as taxing multinationals on a global basis, publishing country by country reporting data and setting a minimum global corporate tax rate. Multinationals are groups of entities that are under single management control and have a single set of owners, and should therefore be taxed as unitary firms.