Tax Injustice in the Global South - Causes, Consequences & Solutions
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Overview2 Topics
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Background information12 Topics
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1. What is tax?
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2. What are the purposes of tax? 4Rs & 2Ss
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3. Framing: What is distributive justice & what does it have to do with tax?
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4. How is tax an issue of Global Justice?
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5. The tax consensus: How have tax-policy recommendations impacted developing countries?
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6. What is the logic behind the tax consensus?
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7. How is the world different today than when the dominant tax rules were created?
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8. Corporate tax dodging in the Global South
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9. What are the impacts of tax dodging?
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10. What strategies are used to avoid paying tax?
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11. What can be done?
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12. Solutions
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1. What is tax?
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Endnotes
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Glossary
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References
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Interactive learningDeepen your knowledge1 Quiz
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Didactic partsExercises for group activities8 Topics
Who is eating all the biscuits?
Session objective: To show how large multinationals are taking more than they are giving from poorer countries.
Learning objective(s): Learners understand that short-changed countries provide a lot to multinational corporations
Time required: 45 minutes
Group size: 24 (at least 10)
Materials:
- A packet of biscuits
- Role cards
Methodology:
- Before the session starts, the facilitator prepares a few participants to understand and to later share what resources a state and its people contribute to the productivity of a foreign company operating on its soil. A few people are asked to volunteer and they are given a role card each. Don’t let them see each other’s role cards.
- While they are learning their roles, tell the rest of the group that they are citizens of Zambia.
- Welcome the role-players ‘on stage’.
- Ask them to begin, starting with the CEO. You as facilitator can act as convenor of the event.
- Afterwards, thank all volunteers and tell everyone the role play is over and now you will reflect.
- Host a discussion:
- Ask participants if the benefit was shared fairly. Why/why not?
- Ask “Should [Zambia] ask for more taxes from foreign companies, given that the biscuit was created with ingredients found nationally and paid for with people’s taxes?”
- Ask, “How does Zambia pay for security, roads, electricity etc.?”
- Ask what barriers exist to prevent Zambia doing so? Here introduce the following barriers:
- Race to the Bottom
- Secrecy jurisdictions / tax havens
- OECD led by rich countries
- Any more themes you want to introduce.
Role cards
You are the CEO of Orange, a tech company that has a factory in Zambia. Your company has made a huge profit this year. When prompted, you say to the citizens of Zambia, “It is a great moment for me to address you after a year of business in your country. All too soon we have come to the end of the year and I must confess, it has been a year of successful business. You as a country contributed a lot to the success of my business.” After the citizens have responded to you, you say the following: “Yes, you and your country greatly contributed to how much money my company made for the year and I am here to share the benefits with your nation”.
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You are the owner of PhonesPhonesPhones, a mobile shop in Zambia that purchases hardware from Orange. |
You are a local councillor, and you respond to the CEO of Orange first, by saying “of course, we gave you land”. Another says ‘and security’, another says ‘and labour’, and others mention electricity, roads, raw materials, minerals, etc. |
You are Head of the Police Force and you respond second by saying, “of course, we gave you security”. |
You are a worker in the factory, and you respond to the CEO of Orange third, by saying “of course, we gave you labour”. |
You are an engineer, and you respond to the CEO of Orange fourth, by saying “of course, we gave you electricity and roads”. |
You are a miner, and you respond to the CEO of Orange fifth, by saying “of course, we gave raw materials and minerals”. |
You are the Minister for Finance, and you will take the offering from the CEO of Orange.
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Facilitator tips:
Encourage learners to have fun, and really try to embody their roles. It’s important the CEO doesn’t feel singled out, so make sure to thank everyone after and give the CEO a particularly warm thank you as that is by far the most difficult role.
