Inequalities - within countries and among them - have been aided by the international tax system over the last several decades.
In many developing countries, the widespread use of special tax incentives has brought the effective corporate tax rates close to zero, creating a situation in which foreign-owned companies profit at the expense of home-grown development efforts. In developed countries, the situation isn't much better, and global competition to attract foreign business with low taxes can have a negative effect on all countries. As the world faces a “race to the bottom,” the problem is hardly confined to corporate taxation: many high net-worth private individuals use “offshore” structures to effectively hide the real ownership of their wealth, as well as its location and often its very existence.
Against this background, FES New York and its partners, the Independent Commission for the Reform of International Corporate Taxation (ICRICT) and Fair Tax Mark, launched a new initiative to address globally persistent issues of wealth transparency and responsible tax conduct. Held under the umbrella of the UN75 Global Governance Forum, the launch of the "Good Global Citizens" partnership included two small, action-focused roundtables with international taxation experts, academics, business leaders and representatives from international organizations.
Working towards concrete proposals for a more fair and inclusive post-Covid economy, the partnership featured discussions on a Global Asset Registry, led by ICRICT, as well as the Fair Tax Mark, an incentive-based certificate awarded to corporations paying their fair share in taxes. Whilst the work of the "Good Global Citizens" partnership for wealth transparency and responsible tax conduct is ongoing, an initial set of outcomes and recommendations have been announced and incorporated into the UN75 "Roadmap for the Future We Want & the UN We Need."