TRISTE E POBRE DO PAÍS QUE NÃO DEVOLVE AO SEU POVO OS SERVIÇOS QUE SÃO SUSTENTADOS PELO PRÓPRIO POVO. O BRASIL É ASSIM DESDE A DESCOBERTA, 523 ANOS, INFELIZMENTE, SORTE NAS SUAS PESQUISAS

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TAX AND DEVELOPMENT

PRINCIPLES TO ENHANCE THE TRANSPARENCY AND GOVERNANCE OF TAX INCENTIVES FOR INVESTMENT IN DEVELOPING COUNTRIES

OECD

Better Policies For Better Lives

"Many countries, developed and developing alike, offer various incentives in the hope of attracting investors and fostering economic growth. Yet there is strong evidence that calls into question the effectiveness of some tax incentives for investment, including in particular tax free zones and tax holidays. Indeed, ineffective tax incentives are no compensation for or alternative to a poor investment climate and may actually damage a developing country’s revenue base, eroding resources for the real drivers of investment decisions - infrastructure, education and security. There is a significant regional competitiveness dimension too, as governments may perceive a threat of investors choosing neighbouring countries, triggering ‘a race to the bottom’ that make countries in a region collectively worse off.

Tax base erosion due to tax incentives is compounded by the lack of transparency and clarity in the provision, administration, and governance of tax incentives. The granting of tax incentives for investment is often done outside of a country’s tax laws and administration, sometimes under multiple pieces of legislation. The design and administration of tax incentives may be the responsibility of several different Ministries (e.g., finance, trade, investment). Where various Ministries are involved, they may not coordinate their incentive measures (tax and non-tax) with each other or the national revenue authority, with the result that incentives may overlap, be inconsistent, or even work at cross-purposes. Administrative discretion in the management of incentives can seriously increase the risk of corruption and rent seeking.

The importance of addressing the governance of tax incentives was raised in 2011 by the IMF, OECD, UN and World Bank in their joint report to the G-20 on supporting effective tax systems in developing countries (G20 report 2011). For its part, the OECD’s Task Force on Tax and Development has identified the need for a more effective global transparency framework for tax incentives for investment -- the purpose of which is to promote transparency in decision-making processes, increase the information available on costs and benefits, to limit discretion and increase accountability."

Thank you for your great insights Dr. Sundus F Hantoosh