Polish Economic Institute at World Economic Forum 2020

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A high-level debate “Tax Cooperation: How to Avoid a Race to the Bottom” at Polish House Davos during which the conclusions of the latest report “Tax unfairness in the European Union – towards greater solidarity in fighting tax evasion”, were reviewed.

The discussion was attended by:

  • Mateusz Morawiecki, Prime Minister of Poland,
  • José Ángel Gurría, Secretary General OECD,
  • Bruno Le Maire, Minister of Economy and Finance, France.

The problem of a reliable taxation system is crucial and should be tackled by combined forces of the international community. Collecting taxes is not only one of the basic tasks of every state. When done effectively, it is also a key element of building trust among the state and market actors by providing them with a level playing field. Thus, it fulfills an essential role in increasing competitiveness which is healthy and based on transparent rules.

The European economy cannot fully spread its wings when losing billions of euros per year. Nowadays the tax loss caused by tax havens is ¼ higher than the EU’s current budget. It means that if we eliminate the loss, we can reinforce the EU’s budget and spend the money on the Green New Deal or fighting against climate change. That could also be a solution to a reduced budget after Brexit.

During this debate, the Polish Economic Institute, a public think-tank from Poland, has outlined the top leakages in European tax systems in PIT, CIT and VAT. Some of them being fraudulent and some connected with aggressive tax optimisation.

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