Amidst the multiple crises in health, the economy, and the climate, peoples in Asia continue to bear
the social and economic costs of fundamental flaws in national and international tax systems.
Illicit financial flows continue to strip away potential revenues critical for financing health and social services most needed for our survival, safety, healing and rebuilding. Tax competition, wide-ranging corporate tax incentives, and barriers to taxation of extractives and digital services remain rife
in the region. The escalating race to the bottom in corporate income tax regimes combined
with corruption, weak transparency frameworks and regulatory mechanisms have enabled
multinational corporations and domestic elites to siphon hundreds of billions out of our countries.
Hollow Pillars on Unequal Grounds:
On July 10 2021, the G20 Finance Ministers and Central Bank Governors concluded their third meeting
with a resounding endorsement of the unambitious and undemocratic two-pillar solution of the G7
and the OECD. The G20 endorsement is the latest rubber stamp to the agenda dominated and led
by the Global North to redefine global tax rules exclusively for their own benefit. While painting the illusion
of plugging foregone revenues, the G20 and the OECD’S two-pillar proposal is a false solution that opens more loopholes for tax abuses than it closes. The consequence of the OECD/G20 agreement is strikingly simple – it undermines the calls of peoples from the Global South for a comprehensive, democratic,
and just system of global corporate taxation.