Speech
Maurice Lauré Prize
In the presence of Mrs. Lauré, I first want to thank very strongly the French IFA Branch for proposing the creation of the Maurice Lauré Prize and to address my warmest thanks to the IFA Executive Committee which has accepted the proposal with great enthusiasm.
This event in itself shows the growing importance that indirect taxation has taken in the field of taxation.
Few numbers of important countries (ie: The USA), still have indirect taxes levied at the final stage and amongst all the excise duties and others which exist, one tax appears to be outshining all the others.
It is VAT – Value Added Tax.
This tax was invented in 1952 by Maurice Lauré who wrote a thesis, asking for the creation of such a new tax. 2 Years later, it was adopted and implemented for the first time in France in 1954. Because of its intrinsic characteristics, it was adopted by the EU. It has become the main foundation of the EU budget. VAT is very popular with governments: so far 165 countries have adopted this new tax.
Why such an overwhelming success?
Maurice Lauré was convinced that the world was to become an open economy and that consequently taxation must necessarily adapt to such an evolution.
From this firm belief derive the intrinsic qualities of the tax.
- It is a neutral tax: it does not disturb the production or distribution circuit within one jurisdiction or between different jurisdictions.
- It yields an excellent revenue: in certain important states, it can represent up to 50% of the total tax revenue.
- Because of its fractionated method of payment, it is a self policing tax.
- It has shown all its flexibility: VAT can be applied at a federal level, coexisting with local indirect taxes.
Because of its natural qualities, former turnover taxes appear as belonging to the past.
Why a Maurice Lauré Prize?
First, it is to honour the memory of the man who has invented such a tax.
Second, very strangely despite the success of VAT throughout the world, there is very little doctrine concerning this tax.
We need students. Scholars and tax people:
• to indulge into the merits of the tax;
• to assess its economic and social impacts;
• to determine its perimeter of implementation;
• to study whether an exemption is preferable to a moderate taxation etc…
All subjects on which taxpayers, citizens, governments and administrations ask for guidance.
So I beg all the IFA Branches to make it known that the Maurice Lauré Prize has been instituted in order to reward writings, studies of high quality, improving the good functioning of indirect taxes whether they are a VAT type like or not.
Now I turn to the second part of my intervention, consisting in awarding for the first time the Maurice Lauré Prize.
The winner is Eva Oertel for her remarkable work on Cross Border Leasing.
She has very finely analysed the leasing operations in Germany, UK and France, has brilliantly outlined the differences and discrepancies existing under a common EU law, and has come up with enlightened solutions in order to have a unified position applicable in all jurisdictions.
This work of excellence is based throughout on a solid and thorough legal approach, which makes the work so valuable.
Jean-Claude Bouchard
Chair of the Jury