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The role of the tax system in helping to

reduce inequalities

Presented at UNTL-VU Conference on Finding Pathways to Achieve


the Sustainable Development Goals, Dili, July 4th and 5th 2017
Workshop on SGDs #10
Reducing Inequality within & among countries.

Jo Monteiro
LLM in Tax Law
London School of Economics and Political Science (LSE)
OECD Report (2015)
More than USD 200 bn in tax loss at global
level annually (suffered by developing and
developed countries);

Aggressivetax planning by MNEs and


wealthy individuals;

Global Tax Reform led by OECD/G20 on


BEPS
Targets:
10.3.-Ensure equal opportunity and reduce
inequalities of outcome including by
eliminating discriminatory laws, policies and
practices and promoting appropriate
legislation, policies and actions

10.4.
Adopt policies, especially fiscal [tax],
wage and social protection policies, and
progressively achieve greater equality;
Policy considerations:
Fixing loopholes in found in the
existing tax laws/regulations;
Strengthen the tax administration to
properly raise tax revenue from
MNEs and wealthy individuals;
Introduction of new taxes (e.g. VAT
is being considered under the
present tax reform);
Gender-related considerations
Conclusion:
Comprehensive tax reform;

FDIsand tax breaks should be properly


reviewed;

Fixing
loopholes to encourage legal
certainty;

Certaindiscriminatory laws that could


create inequality needs to be re-assessed;