COFFERS Researcher in Interview regarding fiscal systems

Sheila Killian leads the COFFERS work package on expert networks and how the way that the professionals that make them up condition the operation and equity of fiscal systems. The work package is based at the University of Limerick. Interviewed at the university, Sheila highlights the significance of professional ethics to COFFERS core concern with making fiscal systems that are not only perceived as equitable but positively address inequalities across Europe. In the interview Professor Killian points to the importance of finding out how accountants and lawyers think about their work and the ethics that attach to it. The full interview is available as a podcast here.

Panel Discussion in Dublin with COFFERS Research

Professor Sheila Killian

Professor Sheila Killian of UL took part in a public panel discussion moderated by Dr Brian Keegan, Director of Public Policy and Taxation at Chartered Accountants Ireland at Chartered Accountants House, Dublin, on January 31st, 2019. The panel addressed topics of tax and ethics, and Professor Killian drew on the COFFERS work on tax experts and professionals in her contribution. The audience was made up of accountants in practice and in corporate settings as well as stakeholders from education and government. The discussion explored not only the various ethical decision making thought processes involved in tax work, but also the various social, reputational and political influences which can be important factors. The objective was to encourage discussion and create awareness of the importance of an ethical mind-set in the accountancy profession in the context of an increasing consciousness of reputation and trust.

COFFERS researcher co-authors paper for the International Monetary Fund

Saila Stausholm

COFFERS doctoral researcher Saila Stausholm (Copenhagen Business School) has published an co-authored IMF Working Paper estimating the revenue implications of a Destination Based Cash Flow Tax (DBCFT) for 80 countries. On a global average, DBCFT revenues under unchanged tax rates would remain similar to the existing corporate income tax (CIT) revenue, but with sizable redistribution of revenue across countries. Countries are more likely to gain revenue if they have trade deficits, are not reliant on the resource sector, and/or—perhaps surprisingly—are developing economies. DBCFT revenues tend to be more volatile than CIT revenues. Moreover, we consider the revenue losses resulting from spillovers in case of unilateral implementation of a DBCFT. Results suggest that these spillover effects are sizeable if the adopting country is large and globally integrated. These spillovers generate strong revenue-based incentives for many—but not all—other countries to follow the DBCFT adoption. Read the full paper here.

UN Conference: COFFERS tackling illicit financial flows

Richard Murphy, COFFERS researcher and Professor of Practice in International Political Economy at City University of London, recently presented on tackling Illicit financial Flows at United Nations Economic and Social Commission Western Asia International Conference on Financing Sustainable Development in Beirut. Illicit Financial Flows (IFF) constitute a complex and multifaceted problem that simultaneously works in different areas and levels. Acquiring more and better tax data and improving existing tax gap methodologies is key to solving these problems. The conclusion is that every country should perform a qualitative tax spillover assessment in order to appraise tax risks on a country-by-country basis. On his blog, Richard has published text and slides from his presentation.

Utrecht University team publish WODC report

 

In a joint study with Ecorys, a team from Utrecht University led by Professor Unger have, for the first time estimated the extent of money laundering over time with a gravity model. This research, financed by the Dutch Ministry of Finance, seeks to determine the extent to which money laundering has an undermining effect on the regular economy and the financial system.

The study consists of two parts: the first part examines where criminally earned revenues are placed in the regular economy, the second part estimates the annual amount that is laundered in the Netherlands. The extensive research spanning all variables from 181 countries contains more than 20 million observations and estimates the total amount of global money laundering at 677 billion euros in 2014, or 1.2 percent of the world’s GDP. Of this figure the group estimate 16 billion euros can be attributed to money laundering in the Netherlands.

The team consisting of members of Utrecht University School of Economics; Professor Brigitte Unger, Joras Ferwerda, Alexander van Saase, former USE members Ian Koetsier and  Bojken Gjoleka, members of Ecorys Brigitte Slot and Linette Swart and University of Amsterdam Professor Edward Kleemans also propose several policy and future research recommendations, particularly a differentiated money laundering policy given the increasing prevalence of fraud as a money laundering instrument.

Read the English summary here and the full Dutch report here.

Brigitte Unger Inspires Next Generation of Money Laundering Professionals

 

This week COFFERS project leader Brigitte Unger spoke with European students to inspire the next generation of money laundering professionals.

With Money laundering high up on the European agenda, more and more pupils from high school show interest in COFFERS and money laundering.

Lucky students from Brabant, Netherlands Anne van Poppel and Nina van Helmond visited Utrecht University School of Economics this week to speak to Professor Unger and learn more about the latest developments in money laundering. Whilst university students from Paris-Dauphine University as well as high school students from across the Netherlands also had the opportunity to speak to Professor Unger via Skype. These burgeoning money laundering professionals are now writing their first research pieces on money laundering which may one day lead to an exciting career in combatting fiscal fraud

Through this initiative USE aims to capitalise upon this interest and inspire as well as foster talent that will be critical to the success of anti-money laundering efforts in the future.

Brigitte Unger Presents at Parliamentary Hearing

On Thursday, November 1, 2018, COFFERS project coordinator Brigitte Unger presented her research on organised crime and its effects in the Netherlands to a Dutch parliamentary hearing at the House of Representatives.

The parliamentary hearing on the ‘nature, scope and approach of undermining’ addressed a growing problem in the Netherlands. Although there have been notable decreases in the levels of traditional crimes such as robberies, domestic burglaries and violence, new forms of crime have begun to undermine society. These new forms of crime damage social structures themselves or erode public conficence in them.

With criminals now active in residential areas, companies and the internet crime takes place both in the upper and lower worlds with drug trafficking, arms trade and liquidations being prominent  examples of undermining criminal activities.

Armed with a budget of 100 million Euros the Dutch Government is seeking to aggressivily combat undermining crime with a further 10 million euros being made available from 2019.

Presenting her research Brigitte Unger demonstrated that the mediums of drug trafficking and fraud were the principal instruments used by criminals in money laundering but expressed concern at the lack of attention given to the increasing fraud and white collar crime in the Netherlands.

Brigitte Unger Joins Canadian Expert Panel

Coffers Project Coordinator Brigitte Unger has been appointed to join British Colombia’s Expert Panel on money laundering .

In recognition of her expertise in finance, public economics and money laundering Unger was invited to the panel  seeking to develop world leading protections in the real estate sector in British Columbia, which is considered  vulnerable to individuals looking to engage in illicit activity and exploit loopholes.

The panel will look at gaps in compliance and enforcement of existing laws, consumer protection, financial services regulations, regulation of real estate professionals and jurisdictional gaps between British Colombia and the federal government.

The panel consisting of other experts such as Maureen Molney ,of Simon Fraser University, and Tsur Somerville, of British Colombia’s School of Business, will present a final report with recommendations to the Minister of Finance in March 2019.

Leyla Ates publishes article in the Progressive Post

Coffers research team member Leyla Ates has published an article titled “More Transparency Rules, Less Tax Avoidance” in the Autumn 2018 issue of the Progressive Post that is a EU-focused magazine published in English and French.

While the European Council has taken important steps to enhance the exchange of information between tax administrations in order to promote tax transparency and fair tax systems in EU countries. This in turn creates a deeper and fairer single market. However, ambiguity in disclosure obligations and a high threshold requirement risks leaving the door open wide enough for dubious tax schemes to slip through.

Read the full article at the Progressive Post here.