There s class warfare, all right, but it s my class, the rich class, that s making war, and we re winning.

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2 There s class warfare, all right, but it s my class, the rich class, that s making war, and we re winning. -Warren Buffet (world s third wealthiest person in 2011)

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4 98 of the FTSE 100 use tax havens 82 also work in developing countries. Banks & extractive companies use tax havens the most.

5 The great tax robbery Washington Post analyzed 30 large companies such as McDonalds, Microsoft, and Exxon Mobil and found their tax rates have fallen even as profits have risen, thanks in large part to incentives to store overseas profits in offshore tax havens. Many of the companies are paying rates less than half what they paid in the 1960s and 1970s.

6 15 giant corporations that have basically stopped paying taxes General Electric; Boeing; Exxon Mobil; Verizon; Kraft Foods; Citigroup; Dow Chemical; IBM; FedEx; Honeywell; Apple; Pfizer; Google; Microsoft; Merck

7 The high cost of tax evasion Developing countries lose more to tax dodging than they receive in aid each year.

8 Threats to national taxation systems Tax havens/ off-shore finance Switzerland currently the largest off shore banking centre with $2.8 trillion managed assets or 34% of the global private banking industry. Singapore expected to be world s main off shore banking centre by Singapore has expanded from $50 billion in 2000 to $550 billion under management at end of 2011, with $450 billion assets for off-shore clients. Japan also an established centre for global off-shore services. Labuan, a tax haven in Malaysia

9 Why is taxation important? Taxation is an essential part of a good government: Revenues for public spending which can be used to meet the basic needs food, healthcare, housing Redistribution of income Representation democratic say in public policy and spending Changing behaviour e.g. taxes on alcohol and tobacco, environmental pollution

10 The loss for the common good Tax Justice Network estimated that assets held offshore, beyond the reach of effective taxation, are equal to about a third of total global assets, about $21 trillion - $32 trillion. Over half of all world trade passes through tax havens.

11 Taxation and Quality Public Services Financing of quality public services depends on a progressive taxation system > higher income groups pay more tax than lower Effective government tax authority requires well-paid tax inspectors and enough staff a lack of corruption transparency of personal and corporate financial information.

12 Different types of taxes: Personal taxes paid on income earned, or interest Property taxes owning, buying, selling Service taxes (VAT) paid on goods and services Commercial/ business taxes on profits Import/export taxes

13 Changes in patterns of taxation Asia-Pacific - many countries show decline in personal taxes and increase in service taxes over last years. Affects lower income groups disproportionately, is a form of regressive taxation. A decrease in trade taxes, a result of the liberalisation of trade through treaties that require countries to open national markets to international companies. Countries of East Asia show an increase in taxation from direct taxation as a result of increasing economic growth and development. Countries of South Asia show the lowest levels of direct taxation and total taxation income.

14 FTT / Robin Hood Tax If applied globally, a financial transactions tax at a rate of.01% could raise over USD $1 trillion per year, or 2% of global GDP.

15 G20 Cannes

16 G8 Chicago

17 Rio+20 Earth Summit

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19 Robin Hood Tax USA launch

20 World Aids Forum, DC

21 PSI World Congress, SA

22 1000 Robin Hoods

23 Pivotal moment PSI mandate Council of Global Unions Global tax justice coalition International Consortium of Investigative Journalists Community anger at austerity Widespread anger at inequality Anger at corporations for not paying fair share Scandals (Google, Vodaphone, Starbucks )

24 2013 FEB first global coalition meeting MAR World Social Forum - Tax Justice Charter MAY second global unions & NGOs meeting JUNE Pledge to support global movement for tax justice > World Public Services Day 23 June JULY Global strategy working group meeting SEPT ITUC Africa Forum OCT Asia Pacific QPS Forum

25 FTT strategy session 2013

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27 The World Needs Tax Justice & an FTT

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32 Impact of cuts on tax collection/fraud Denmark % cuts in staffing - losing tax revenue UK 19.2% by shedding more than 3300 staff, loss of 1.1 bn in potential tax revenue. NL- 6.3% Reduce budget for tax and customs by 17% by Chance of a business being audited is once in every 43 years.

33 PSI opportunities Strengthen PSI profile, recruit & mobilize affiliates building national campaigns with affiliates & allies Provide training and strategic support to launch pilot campaigns in four PSI regions Identify union messaging, research, materials required

34 Our messages Tax justice for quality public services Tax justice to end corruption Tax justice to end poverty and inequality Tax justice for a fair share for all

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