Tax avoidance by corporations is on the agenda for this weekend’s meeting in Moscow of finance ministers from the Group of 20 advanced and emerging economies. It is a real problem, and its scale is getting difficult to ignore. The answer, though, isn’t further tax-code complication, as some governments favor, but a shift of taxes from profits to investment income.
South Korea needs to be cautious in adopting so-called Tobin tax on financial transactions and increasing bank levies as it’s time for the nation to encourage more capital inflow from overseas, the Financial Services Commission Chairman Kim Seok Dong said at a parliamentary audit today.
Chancellor Angela Merkel will struggle to pass a financial-transaction tax for the euro-area’s 17 members through the German parliament amid resistance from her coalition partner and within her own party, a senior lawmaker said.
President Nicolas Sarkozy’s announcement this week that he would seek re-election was hardly a political thunderclap. It is nonetheless significant: The campaign, which could result in a transfer of power in Europe’s second-largest economy, will inevitably introduce another element of uncertainty into the continent’s struggles to resolve the sovereign-debt crisis.
At least $65 billion might be raised by taxing foreign-exchange transactions and auctioning pollution permits, a United Nations panel said today in a report recommending ways to finance aid for fighting global warming.