Tax Havens are Safe from the OECD for Now
The news has been full of stories about how companies such as Amazon, Apple, Google, Microsoft, Starbucks and others are able to shift their profits to low or no-tax jurisdictions by using novel, legally permitted corporate structures and complex internal...
The Tobin Tax would Work, in Theory
Tax the rich and give money to the poor – that is the basis of fiscal policy put forward by the UK Labour Party’s new shadow chancellor, John McDonnell. As well as forcing large corporations to pay their “fair share,”...
Commercial Bank Reform would help SMEs and ASEAN
Concerns about moderating economic growth and rising income inequality in ASEAN economies have brought small and medium-sized enterprises (SMEs) into the policy limelight. Arguing that SMEs have significant potential for creating jobs, some commentators are suggesting a host of industrial...
Discretionary Trusts and the Smell Test
The public knows something is “not right” with the tax treatment of family trusts (discretionary trusts). Accountants and tax lawyers working with discretionary trusts know firsthand that the income tax treatment has trouble passing the “smell test”. That is something...
Do You Have the Right Personality for a Loan?
Lending money is a risky business. Since 2010, Bank of England figures reveal that lenders have written off an average of £13.2 billion a year in bad loans. You can never be 100% sure that you will ever get your...
Banking System Access Eludes Women Globally
Around the world, women in developing economies enjoy less access than men do to the banking system. Bank account opening procedures, especially requirements to produce identity documents, are a major barrier for undocumented women in developing countries. These requirements aim...
Trading Short-Term Financing Gain for Long-Term Pain
George Osborne is in the process of finding £20 billion of savings with his government spending review. As the government searches to balance the budget and reduce public spending, it is worth re-examining an old favourite when it comes to...
Increased Mortgage Lending Not Necessarily a Precursor to a Bubble
Domestic banking crises often originate in the real estate sector. Therefore, one might conclude that mortgage lending is negative for financial stability. However, in normal (non-crisis) periods, mortgage lending may actually contribute to financial stability. This is because mortgage loans...
Can Australia Grow Their Economy via Tax Cuts?
In his recent speech on personal income tax cuts, Treasurer Joe Hockey made clear that the “common cause of reform [of the tax system is] to improve the growth trajectory of the Australian economy”. The key to this for Hockey...
Potential Unintended Consequences from Australia’s Bank Deposit Tax
The federal government has given itself until the end of the year to respond to the many recommendations contained within last year’s Financial System Inquiry report, but in one area, it has already decided to act against the Chair David...
The Three Rules of the Dodd-Frank Law
Dodd-Frank turned five last month and once again, the debate around some of its rules sparked many discussions by politicians and economists, but less by the public. According to a poll conducted in 2015, only 4 percent were ‘very familiar’...
The Franc(ness) of SNB’s Problems
Earlier today, the Swiss National Bank reported a record CHF50.1 bln loss. It has the chins wagging, but the real implications are minor. The losses are not realized and are unlikely to be repeated. In fact, if the SNB's report...
Are Globally Systemically Important Banks (G-SIBs) Still at Risk?
Ever since the 2008 financial crisis, the Federal Reserve Board has been trying to regulate big banks that pose huge systemic risk to the economy. The financial crisis highlighted the fact that big banks were taking more risks for which...
Hope for a New Tax Structure to Help Developing Countries Receives a Blow
When an international development conference in Addis Ababa almost collapsed last week, the confrontation emerged from an obscure and unlikely source. Who knew that the status of the UN Tax Committee could so stir the emotions? After taking negotiations to...
Due Process in Imposing Taxation, Important Today, Began 800 Years Ago
If you ask anyone what the Magna Carta is all about, you might be told that it is some sort of proto-human rights or constitutional document. This largely results from the fame and after-life of two particular clauses (39 and...