Programme boosts poor countries’ tax yields by $500m

1 Oct 20

More than $500m of additional revenue has been secured for developing countries in the past five years through a joint OECD and United Nations tax initiative.

 

Tax Inspectors Without Borders launched in July 2015 with the aim of strengthening poorer countries’ auditing capacity and tax compliance of multinational businesses.

In its latest annual report, the organisation claimed to have delivered $537m in revenue that would otherwise have been lost – work it said has become all the more important in the context of Covid-19.

“A sharp decline in global and domestic trade is leading to a commensurate drop in revenues from taxes on goods and services,” the report stated.

“Developing countries, with typically higher reliance on corporate income taxes, are likely to be severely affected.

“In particular, Small Island Developing States and other economies that rely heavily on tourism and hospitality are likely to be among the most affected, and may suffer from the economic consequences for years to come.”

TIWB has either completed programmes in or is currently working in 45 countries and jurisdictions, with 19 more programmes in the pipeline.

The organisation is expanding by launching an initiative on tax crime investigations aimed at improving the automatic exchange of information between governments to fight illicit flows of money around the world.

New programmes are also being launched to cover tax treaty negotiations and environmental taxes.

“Tax Inspectors Without Borders is playing a key role in helping developing countries to recover from the pandemic,” said Achim Steiner, administrator of the United Nations Development Programme.

“Its new service aims to increase domestic revenues while supporting the transition to greener, more sustainable economies.”

 

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