Tax Justice Debt and Development Coalition Ireland ICTU

Tax Justice Debt and Development Coalition Ireland ICTU Global Solidarity Summer School

Debt and Development Coalition Ireland National network Solidarity based with activists and social movements in the Global South Focus on financial exploitation of the Global South: South-North resource flows Debt, role of international financial institutions (World Bank; IMF) and tax justice

A Myraid of Crises for Global South Pre- existing poverty levels – not on target to meet MDGs External Debt $3 trillion ($100 m payments per day) Financial crisis: reduction in remittances (Kenya: 5% GDP, fall in ‘ 08 by 33%); growing unemployment (up by at least 40 m in ‘ 09 GS); $2 trillion financial shortfall in Global South; 30% drop in exports.

A Myraid of Crises for Global South Food Crisis: FAO: 100 m more people in chronic hunger in 2009. Climate crisis: Approx 26 million people displaced already; 375 million people may be affected by climate disasters by 2015; 200 million people may be displaced each year by 2050; major cities dependent on water from mountain ranges face collapse A new debt crisis: Countries such as Zambia already facing unsustainable debts

‘Tax Consensus’ ‘Tax Consensus’ – tax competition as approach to national ec devmt and corporate business models Low tax regimes by govmt & ‘tax minimisation’ Strongly supported by World Bank and IMF in Global South Increasing role of tax havens: $7 trillion stashed in tax havens

Why Tax Justice? The scale of tax dodging At least $160 billion every year lost to Southern countries due to tax evasion. Significantly greater than all the aid received by South from North. $160 Bn Could save 350, 000 children’s lives

Tax Dodging: How does it work? Transfer pricing – companies exaggerate costs and minimise profits 60% of international trade takes place within TNCs Profits are transferred to holding companies based in tax havens

Tax havens Allow non-residents to open bank accounts No disclosure of information to other countries Cayman Islands – 5 th largest banking centre $2 trillion Also Switzerland, Isle of Man, Jersey – and Ireland

Tax and Development Strong tax base essential if countries are to build stronger democratic states: Rltns bwtn gvmt & citizens, and real exit strategies from aid dependency. Direct taxation and corporate taxation NB.

Moving up the Agenda: Financial Crisis & Tax Havens Banks and hedge funds engaging in risky practices used tax havens. Losses and liabilities hidden off balance sheet G 20 / Obama raising questions about tax havens; OECD ‘concern’; race to sign info exchange agreements

Demands for change End to banking secrecy – automatic exchange of information Control over accountancy firms – end to selfregulation Country-by-country reporting for TNCs

Campaign for Tax Justice Debt and Development Coalition Ireland & wider tax justice network We need trade union support in Ireland! nessa@debtireland. org; 01 6174835; www. debtireland. org