In the first issue of the IFC Economic Report we considered how IFCs are important to the world economy – what they offer to the economy, with case studies considering examining in particular their contribution to emerging markets.
In this edition of the Report we look at what IFCs must do to protect their existence and their business model in light of EU, OECD and US rhetoric on stopping the use of so called ‘tax havens’ and ‘offshore’.
In our lead article, Prof Gilbert Morris considers the need for an Organisation of IFCs to speak on behalf of IFCs in the international forum, research, explain and foster the role of IFCs in the global financial system, whilst working towards fair cross border tax regulations and against tax harmonisation.
Andrew Morriss, Chair in Law & Professor of Business, University of Alabama, considers the damage that could be caused to the world economy if IFCs are eradicated and the role IFCs play in pushing regulatory competition.
Professor Philip Booth, Economist and Director of the Institute of Economic Affairs looks at the repercussions of the financial crisis and considers why IFCs are the scapegoats for bad government policy and one by one counters the arguments brought up time and again against IFCs.
While IFC Forum members provide case studies with examples of what IFCs are doing in practice to adapt their business models to the changing global economic and political demands.
THE BIG DEBATE: Can and should morality be applied to corporate tax planning?
We put this question a wide spectrum of people involved with the wealth management industry: With opposing statements on the subject from NGO Action Aid and private practitioner Anthony Travers, followed with sound bites from academics, economists, tax planners, the EU and the OECD.
RESEARCH: Professor Vera Troeger questions the legitimacy of the recurrent hypothesis that tax competition results in a race to the bottom. She highlights the many factors that influence an economy that make this statement nothing short of a myth.
INTERVIEWS: The IFC Economic Report includes interviews with Monica Bhatia, Head of the Global Forum on Transparency and Exchange of Information for tax Purposes, OECD; Philip Kermode, Directorate General of Tax at the EU Commission; and Helene Anne Lewis, STEP Chair.
Also in this edition: FATCA unveiled – US FATCA and the EU sons and daughters of FATCA; Francoise Hendy takes on the OECD and the aftermath of the email leaks scandal.