UN, IFIs Introduce Platform for Tax Collaboration
The International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD), the UN Department of Economic and Social Affairs (DESA), and the World Bank Group introduced a joint initiative, the Platform for Collaboration on Tax, to UN Member States. Marijn Verhoeven, World Bank Group, expressed excitement that the international community “has finally woken up to the importance of domestic resource mobilization.”
The Platform aims to intensify cooperation between the IMF, the OECD, the UN and the World Bank on tax issues. The initiative is intended to: strengthen the organizations’ capacity-building support to countries; deliver guidance developed jointly; share information on operational and knowledge activities for the benefit of developing countries; and help developing countries to actively participate in the ongoing global discussion of tax issues. Among the Platform’s first tasks is to produce toolkits to support developing countries in addressing international tax evasion and avoidance, including the issues covered under the Group of 20 (G-20) and OECD Base Erosion and Profit Shifting (BEPS) Project. The Platform is hosted by the World Bank Group’s website.
In February 2016, the Platform was welcomed by the G-20 Finance Ministers during their meeting in Shanghai. The Ministers requested the four organizations to produce a joint report with recommendations on mechanisms for effective implementation and funding of technical assistance programs. The resulting report, titled ‘Enhancing the Effectiveness of External Support in Building Tax Capacity in Developing Countries,’ was acknowledged by G-20 Leaders at the Summit in Hangzhou, China, in September 2016.
The event ‘The Platform for Collaboration on Tax: A major step to boost international cooperation in tax matters’ took place on 21 October 2016, at UN Headquarters in New York, US. Moderator Lenni Montiel, DESA, highlighted the role of strong tax systems in effective domestic resource mobilization, which he said is essential for achieving the 2030 Agenda for Sustainable Development and the Addis Ababa Action Agenda (AAAA). Alexander Trepelkov, DESA, said the Platform will engage with the UN’s Committee of Experts on International Cooperation in Tax Matters during the UN Economic and Social Council’s (ECOSOC) special meeting on international cooperation in tax matters, to be held on 9 December 2016, in New York.
Victoria Perry, IMF, explained that the toolkits are developed after extensive consultations with all relevant stakeholders in countries. They contain reports and analyses, as well as practical solutions such as training material and model legislation. She said the first toolkit focused on Tax Incentives and the next will focus on Indirect Transfers of Assets.
Grace Perez-Navarro, OECD, noted that the four organizations seek to ensure their interventions respond to the needs of countries. She said they will work very closely with regional organizations and regional partners.
Verhoeven highlighted recommendations for enhancing effectiveness in building tax capacity, including: develop coherent revenue strategies; support non-governmental stakeholders; and nurture managerial and technical skills in tax agencies. These recommendations are contained in the joint report from the four organizations, requested by the G-20 Finance Ministers.
Socorro Velázquez, Inter-American Center of Tax Administration, said the Platform can improve its cooperation with regional organizations by keeping them informed through effective communication, coordinating efforts, and involving them “on the front end.”
