[GA} At Vote: Ban on Double Taxation [Complete]

mcmasterdonia

mcmasterdonia

Just like a queef in the wind, so is life
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TNP Nation
McMasterdonia

Ban on Double Taxation
Category: Free Trade | Strength: Strong | Proposed by: Christian Democrats​


Description: The General Assembly,

Seeking to promote international commerce and economic well-being,

Recognizing that many people and companies earn incomes and profits in foreign countries,

Believing it is wrong for one set of earnings to be taxed by multiple countries,

Wishing to protect people and companies from unfair foreign taxes,

Concerned that member states, by levying foreign taxes, can harm employment in other member states,

1. Defines the following terms for use in this resolution:

Company: any business, nonprofit organization, or similar entity that may be taxed by a government separately from the individuals who own it, hold membership in it, or are otherwise involved in it;

Domestic taxation policy: a tax levied only against the domestic earnings of residents or companies;

Earning: anything of value that an individual, family, or company receives;

Family: a group of two or more individuals legally related for tax purposes and taxed as a single unit;

Individual: a single natural person considered apart from other people;

2. Bans the levy of income taxes on the earnings of individuals and families who are neither de jure nor de facto residents;

3. Prohibits the levy of company taxes on the earnings that a company makes in foreign member states, unless all the member states in which that particular company operates have a tax treaty or tax treaties with one another to the contrary;

4. Declares that no company, under the exception of Section 3, shall be forced to pay more in company taxes than it would pay if all its earnings were coming from the member state in which it operates in which its company tax obligation would be highest;

5. Encourages member states, in their pursuits to promote commerce and the welfare of their citizens, to sign and ratify tax treaties and double taxation avoidance agreements regarding other kinds of taxes besides income taxes and company taxes;

6. Affirms that this resolution has absolutely no effect on domestic taxation policies; and

7. Grants the World Assembly Trade Commission ultimate authority to issue official and binding rulings interpreting this resolution whenever actual disputes arise between member states or between member states and those who are taxed by them.
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Vote Aye, Nay or Abstain:
 
I don't think I currently have a vote, but, as a WA advisor, I'd recommend a Nay vote. It isn't a bad idea, but CD didn't fully take into account instances such as contract work where the labor and manufacturing is done in one jurisdiction and then completed within another, which has no formal presence of a particular corporation. In short, it doesn't feel as if the resolution adequately addresses the otherwise very complex nature of the issue.

That said, it isn't likely to be disastrous if it passes.
 
So, what's the pros and cons of this proposal? I don't really see anything bad with this, but I've abstained from voting to this point because I feel I'm not properly understanding what this proposal would do if it were passed.
 
Alta Italia:
So, what's the pros and cons of this proposal? I don't really see anything bad with this, but I've abstained from voting to this point because I feel I'm not properly understanding what this proposal would do if it were passed.
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We've been assured before that TNP's WA forum is a vibrant birthplace of democracy so I'm sure you'll get plenty of debate on this point, but from my point of view:

The pros of this proposal are that treaties to eliminate double taxation are fairly common in international law, and a WA-wide version makes a lot of sense. After all, businesses are more likely to engage in international operations if they're not going to be taxed twice on the same revenue. The resolution also effectively establishes each nation's jurisdiction in tax policy, something the WA - which has never really legislated properly on jurisdiction - has kind of taken for granted, so there's something for the national sovereignty lobby.

The cons are simply that the resolution is too simplistic. Tax treaties are typically enormously complex, but WA proposals are limited to 3500 characters. This means the WATC, an unaccountable committee, ends up being given absolutely vast discretionary power with no clear mechanism or mandate, while the definition of "earnings" still leaves a lot of complications unresolved.

What this proposal is not is a violation of national sovereignty, an empowerment of tax havens, a ploy to support MNCs, or a contradiction of Resolution #17, as various ridiculous claims have been made in the official debate (which, admittedly, is much inferior to TNP's flourishing, almost Athenian, debate).
 
OK. So, ultimately, it's a good effort, and the thing it is trying to do is good, but it doesn't adequately tackle the issue at hand?
 
Alta Italia:
OK. So, ultimately, it's a good effort, and the thing it is trying to do is good, but it doesn't adequately tackle the issue at hand?
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Well, bear in mind this is just my opinion. There are other opinions. Some people are opposed to the whole idea. Some people completely support the proposal as written. Some people - a not insignificant number - think it should be voted down because of the author's stance on abortion. I don't think one person can give a decisive opinion on a proposal.

But I would say that a vote against this proposal doesn't necessarily mean being opposed to the concept of a double taxation treaty: and CD has indicated if this fails (which it will) he might revisit the issue in more nuanced language.
 
Voting on this resolution has ended.

Thanks to those nations who cast their votes. Your participation is a great help to the region.

This topic has been locked and sent to the Archives for safekeeping. If you would like this topic to be re-opened for further discussion, please contact the WA Delegate, a Global Moderator, or an Administrator for assistance. Thank you.
 
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