In the latest episode of my Economics Explained podcast, I chat with QUT Head of School of Economics and Finance Professor Pascalis Raimondos about international taxation issues, particularly multinational and personal tax avoidance and evasion. As Pascalis notes in the interview, tax avoidance has become topical again lately with the release on Netflix of Steven Soderbergh’s The Laundromat about the Panama Papers.
Use these timestamps to jump right into our conversation:
- 1:45 – are tax avoidance and tax evasion a major concern?
- 3:40 – thin capitalisation as a way multinationals can minimise tax
- 5:00 – transfer pricing as another way
- 10:25 – having a lot of intangible capital (e.g. Apple, Starbucks) can assist in tax minimisation
- 14:20 – need for international cooperation e.g. formula(ry) apportionment
- 21:35 – Panama papers, shell companies, The Laundromat on Netflix
- 27:40 – following Piketty, do we need inheritance/wealth taxes?
- 31:25 – economic benefits of Trump corporate tax cut in US
- 34:40 – Pascalis recommends a cash flow tax, which I note was suggested by the tax review led by Australian Treasury Secretary Ken Henry (see the 2010 Final Report)