The Global Tax Advisers Platform and its priorities
Credit to Author: EUNEY MARIE MATA-PEREZ| Date: Wed, 06 Nov 2019 16:21:46 +0000
The world is getting smaller. Cross-border and digital transactions are becoming an integral part of business and everyday life. Thus, a global approach to taxing digital transactions is essential; otherwise, the risk of different countries promulgating their own rules leading to double taxation is very high. There are also calls for the use of taxation to contribute to sustainability, increasing tax morale and tax certainty, as well as respect for taxpayers’ rights.
All these current developments have great impact not just on taxpayers and governments, but also on tax advisers and consultants all over the world.
On October 3, 2019, three regional confederates or associations of tax consultants, namely, the Asia-Oceania Tax Consultants’ Association (AOTCA), the West African Union of Tax Institutes (WAUTI), and CFE Tax Advisors Europe, representing tax advisers and their associations from Asia-Oceania, West Africa and Europe, signed the Torino-Busan Declaration in Turin, Italy. The declaration was signed again on Oct. 17, 2019 in Busan, South Korea, on the occasion of the 2019 International Tax Conference of AOTCA. I represented AOTCA, as its current president.
AOTCA, WAUTI and CFE, combined, represents several tax institutes and associations comprising of hundreds of thousands of tax professionals all over the world.
The signing was on the occasion of the inaugural conference of the Global Tax Advisers Platform (GTAP). The principal purpose of GTAP is to promote the public interest by ensuring the fair and efficient operation of national and international tax systems, including the recognition of the rights and interests of taxpayers and the role of tax professionals. To this end, GTAP provides the forum for the regular meeting, exchange program, dialogue and interaction of tax experts from all continents.
The Torino-Busan Declaration sets out the four key short-term priorities for the pursuit of the principal purpose of GTAP, and aspires to contribute and shape contemporaneous developments in global taxation.
The four priorities highlighted in the Declaration are: 1.) Tax for growth; 2.) sustainable tax policies; 3.) tax and digitalization; and 4.) taxpayers’ rights and certainty in a fast-paced world.
Tax for growth
Taxation is one of the main factors influencing growth and development. It has been
evidenced that the distribution of the tax burden can encourage or discourage economic development. Moreover, tax policy determines the key direction of development.
Constructing a global tax framework that encourages stable economic growth, oriented toward improvement of living conditions for all, is one of GTAP’s principal aspirations. Thus, GTAP is committed to help promote a tax morale as a policy course of action with the most meaningful impact on capacity building and economic growth.
Tax and climate change – sustainable tax policies
Climate change affects us all. Tax policy is a key tool to internalize environmental costs and foster the transition to a low carbon economy, for the generations to come. Future-proof tax systems are an equilibrium between today’s public finance needs and tomorrow’s sustainable policies. GTAP members aspire to share their unique knowledge on tax with governments and other international stakeholders in the process of transition to a low carbon global economy.
Tax and digitalization
GTAP calls for a coordinated international tax policy response to the challenges posed by digitalization. Identifying tax rules that can inspire consensus of national legislators around the globe is essential to foster this digital era for the service of humanity. In the area of taxation, digitalization exacerbates the perceived mismatch between where the value is created and where taxes are paid, which affects the perception of fairness in our tax systems, across borders and nations. Therefore, these significant cross-jurisdictional issues merit a global response, while the new “single global tax jurisdiction” demands rules of broad consensus.
Taxpayers’ rights and certainty in a fast-paced world
Sustainable growth is contingent on effective tax compliance. As such, taxpayers’ active and willing compliance ensures more efficient collection of sufficient resources, necessary for fulfillment of the social contract between citizens and governments. When taxpayers’ rights are not sufficiently guaranteed, taxpayers’ active and willing compliance is undermined. A tax framework that cannot adequately address the current evolving reality results in uncertainty at the expense of tax compliance and economic growth.
Consequently, in a dynamic global economic framework, taxpayers’ rights should serve as a beacon of certainty. Tax certainty with equity, simplicity and convenience have been noted as the ingredients of an efficient tax system.
GTAP underlines the fundamental importance of taxpayers’ rights for tax good governance, and the role played in this respect by the statements of taxpayer, and tax administration, rights and obligations. To this end, GTAP members urge governments and international bodies to promote a “fundamental right of tax certainty.”
In these changing times, we can no longer exclude ourselves from worldwide developments. We have to do our share to contribute. This is what GTAP seeks to do in the area of international and global taxation. We have a lot to do.
Euney Marie J. Mata-Perez is a CPA-Lawyer and the managing partner of Mata-Perez, Tamayo & Francisco (MTF Counsel). She is a corporate, M&A and tax lawyer. She is the president of the Asia-Oceana Tax Consultants’ Association.
This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. If you have any question or comment regarding this article, you may email the author at info@mtfcounsel.com or visit MTF Counsel’s website at www.mtfcounsel.com