The International Tax and Investment Centre (ITIC) aims to improve the investment climate in transition and developing countries. As president, what’s in your in-tray?
With over 85 countries participating in ITIC programmes, my in-tray varies widely by the hour rather than the day or the week. We’ve just concluded a very successful Eurasia Tax Forum and are laying the groundwork for other regional initiatives this fall. I’m also spending a fair bit of time these days on tax and customs issues in Iraq and Libya, and most likely soon in Iran, as they relate to oil and gas development and services provision. And we are continually responding to requests for expert advice in an expanding range of ‘new markets’ around the world.
How does the ITIC engage with stakeholders?
We adopt a ‘neutral table’ approach for engaging stakeholders to discuss international best practices as they relate to tax, trade and investment policies that enhance economic growth in non-OECD countries. This is designed to facilitate mutual understanding and trust among government officials, academic experts and business executives, as well as representatives of international financial institutions such as the International Monetary Fund, World Bank, World Customs Organisation, and the OECD.
This ITIC approach is demand-driven. Governments around the world seek ITIC’s expertise and capacity-building assistance. For more than 20 years, ITIC has responded to hundreds of requests for expert consultations and technical assistance from finance ministries and revenue agencies from the former Soviet Union to Asia, Africa, the Middle East, and Latin America.
How did you get into international tax?
In 1991, I led a delegation of US corporate tax officers, representatives from the US Treasury and the Congressional Joint Committee on Taxation to an international conference in Moscow. This fostered our relationship with the Russian Ministry of Finance, and soon thereafter in Kazakhstan, both of which asked for expert advice on ‘how should we develop our tax system so we can successfully compete in the world economy for capital investment?’ This request led to the founding of ITIC and our first major project to help Kazakhstan get rid of 56 Soviet-era tax laws and replace them with one unified tax code consistent with OECD norms. This was the first modern tax code among the former Soviet states.
If you could make one change to tax law or practice anywhere in the world, what would it be?
Consistent with the views ITIC has shared with governments around the world, we believe the most competitive tax systems have broad bases and low rates, and are simple and predictable. In 2000, we witnessed how a 13% flat personal income tax and 20% corporate income tax rates can transform the taxpaying culture in Russia. This simplification of the Russian tax regime was one of the greatest contributors to converting large portions of their economy from the black market to the legal economy and providing the government with a stable revenue base. The lessons learned from the successful tax reforms such as Russia’s should be considered by every developing country.
What’s your feeling about the relationship between tax and trade?
I believe tax policy is a country’s most important trade policy, yet rarely are such policies considered together. Policymakers need to look at the interrelationship between tax and trade policies – a good example is the work done by my colleagues Jeffrey Owens and Hafiz Choudhury on the relationship between double tax treaties and bilateral investment treaties. Given the likely growth of tax disputes that will result from BEPS-implementation legislation, we must look for better risk-based ways to resolve disputes and prevent them from occurring. This will not only improve investment climates, but will also better utilize the scarce resources and capacities of tax administrations. These are all areas that ITIC is discussing with governments through our regional tax forums and capacity-building programs.
Tell us a secret.
My favorite times are spent skiing with my family in Colorado. We are all equals as the mountain challenges us.
The International Tax and Investment Centre (ITIC) aims to improve the investment climate in transition and developing countries. As president, what’s in your in-tray?
With over 85 countries participating in ITIC programmes, my in-tray varies widely by the hour rather than the day or the week. We’ve just concluded a very successful Eurasia Tax Forum and are laying the groundwork for other regional initiatives this fall. I’m also spending a fair bit of time these days on tax and customs issues in Iraq and Libya, and most likely soon in Iran, as they relate to oil and gas development and services provision. And we are continually responding to requests for expert advice in an expanding range of ‘new markets’ around the world.
How does the ITIC engage with stakeholders?
We adopt a ‘neutral table’ approach for engaging stakeholders to discuss international best practices as they relate to tax, trade and investment policies that enhance economic growth in non-OECD countries. This is designed to facilitate mutual understanding and trust among government officials, academic experts and business executives, as well as representatives of international financial institutions such as the International Monetary Fund, World Bank, World Customs Organisation, and the OECD.
This ITIC approach is demand-driven. Governments around the world seek ITIC’s expertise and capacity-building assistance. For more than 20 years, ITIC has responded to hundreds of requests for expert consultations and technical assistance from finance ministries and revenue agencies from the former Soviet Union to Asia, Africa, the Middle East, and Latin America.
How did you get into international tax?
In 1991, I led a delegation of US corporate tax officers, representatives from the US Treasury and the Congressional Joint Committee on Taxation to an international conference in Moscow. This fostered our relationship with the Russian Ministry of Finance, and soon thereafter in Kazakhstan, both of which asked for expert advice on ‘how should we develop our tax system so we can successfully compete in the world economy for capital investment?’ This request led to the founding of ITIC and our first major project to help Kazakhstan get rid of 56 Soviet-era tax laws and replace them with one unified tax code consistent with OECD norms. This was the first modern tax code among the former Soviet states.
If you could make one change to tax law or practice anywhere in the world, what would it be?
Consistent with the views ITIC has shared with governments around the world, we believe the most competitive tax systems have broad bases and low rates, and are simple and predictable. In 2000, we witnessed how a 13% flat personal income tax and 20% corporate income tax rates can transform the taxpaying culture in Russia. This simplification of the Russian tax regime was one of the greatest contributors to converting large portions of their economy from the black market to the legal economy and providing the government with a stable revenue base. The lessons learned from the successful tax reforms such as Russia’s should be considered by every developing country.
What’s your feeling about the relationship between tax and trade?
I believe tax policy is a country’s most important trade policy, yet rarely are such policies considered together. Policymakers need to look at the interrelationship between tax and trade policies – a good example is the work done by my colleagues Jeffrey Owens and Hafiz Choudhury on the relationship between double tax treaties and bilateral investment treaties. Given the likely growth of tax disputes that will result from BEPS-implementation legislation, we must look for better risk-based ways to resolve disputes and prevent them from occurring. This will not only improve investment climates, but will also better utilize the scarce resources and capacities of tax administrations. These are all areas that ITIC is discussing with governments through our regional tax forums and capacity-building programs.
Tell us a secret.
My favorite times are spent skiing with my family in Colorado. We are all equals as the mountain challenges us.
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