Whether we want it or not (and let’s face it, most of us don’t, or shouldn’t, or at least would prefer to be consulted on it before it happens), the global taxman is coming. For now, the OECD is running the show. And the show is getting bigger all the time.
As I reported for WOLF STREET last month, the Global Forum on Transparency and Information Exchange for Tax Purposes (GFTIETP) boasts a membership list of over 120 jurisdictions, as well as the Member States of the European Union. That’s over 150 out of the world’s roughly 200 nations, representing over 90% of the global economy, that have agreed to share the financial details of their citizens, both private and corporate.
The ultimate goal is to create a global cross-reference of everything that moves in the financial world. By implementing increasingly draconian measures to limit the use of cash-in-fist while promoting the use of digital alternatives, governments will be able to track every penny people earn, spend, or save. This weekend, unbeknownest to vitually everybody, G7 finance ministers and central bank governors are meeting in Bari to discuss, among other things, the creation of a global web tax.
Here’s more from Il Sole 24 Ore:
“The web tax is taking shape,” said Economy Minister Pier Carlo Padoan before starting the work of the official session with other ministers.
That outcome was not at all certain leading up to the Bari summit, and is part of a package of Italian suggestions pushed forward by Rome’s sherpas who are now fairly satisfied. The goal is to look at new ways to fight international tax evasion, along with keeping activities like money laundering funding channels for terrorism in the crosshairs.
The Bari G7 Finance summit is likely to produce a large stack of documents. An official statement, a statement with the list of commitments (including the web tax) and a “Bari agenda” focusing in particular on inclusive growth. In the realm of taxation, the summit will produce a report on the best options for a co-ordinated fight against money laundering and financing of the criminal economy
Certainly, the road that leads from statements to action is neither short nor simple, but it must start with the international exchange of tax data, which should be signed at the OECD Ministerial meeting on June 7…