Finally, a decent idea from the Tax Justice Network

This really looks rather good actually:

Tax Advisors Without Borders.

Poor countries often do not know how to run a tax system. And yet recently retired peeps from the rich world often will know how to do so. Put the two together and we might have a winner here.

Do note two very important points:

Compensation of consultants will be limited to modest levels consistent with the compensation typically received by mid-level government officials in the countries in which they reside.

Yes! None of this getting a huge expat NGO wage then.

But also note carefully the tax advice that the proposers think is needed:

For many countries, the most pressing financial task is to maintain effective and fair mechanisms for raising revenues domestically through broad-based taxes, such as consumption taxes and income taxes. In addition, developing countries typically face significant challenges negotiating tax provisions with inbound investors such as mining and agricultural companies…

Quite: they need help in reducing horribly damaging taxes like tariffs and corporation and capital taxes and moving to more sensible taxation policies: on their own citizens, upon consumption and upon Ricardian Rents (ie, mining royalties etc).

Amusingly, given who is pushing the scheme, this advice is entirely contrary to the advice that those pushing this scheme usually give about taxation in poor countries. You know, the TJN insistence that it\’s corporations and capital that must be taxed, with a healthy dose of tariffs \’coz they\’re easy.

2 comments on “Finally, a decent idea from the Tax Justice Network

  1. Compensation of consultants will be limited to modest levels consistent with the compensation typically received by mid-level government officials in the countries in which they reside.

    Would that be the level of compensation that mid-level government employees in the developing world enjoy before or after the proceeds from graft and corruption are counted?

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