Tax policies around the world have inadvertently fuelled the global financial crisis by encouraging companies to use debt rather than equity, says the ACCA. Chas Roy-Chowdhury, the ACCA's global spokesperson on taxation issues, said: 'G-20 leaders have proposed improved coordination between national authorities as a key aspect of restoring confidence in global financial regulation. But is there a need for similar action in the field of taxation?' The ACCA's views are contained in a policy paper called Competition or Co-ordination: Reassessing Tax in a Global Environment. Roy-Chowdhury said: 'Our paper examines the most topical international tax issues, from tax havens to tax competition. Distortions and inconsistencies in tax systems need to be ironed out. Global coordination is vital to make sure that tax is fair and transparent.' Among the recommendations the paper offers to tackle global tax issues are: governments should address national tax rules which reward one finance route over another; tax havens should freely provide information to governments about nationals who use those jurisdictions; and the EU should continue to refrain from pressuring 'flat tax' countries to raise their rates in the name of 'harmonisation'. Roy-Chowdhury added: 'Tax policy is and must remain in the hands of sovereign national governments, which should be able to run regimes suited to their stages of economic development, such as the flat-tax systems in post-communist countries in Eastern Europe.'