Handbook - Developing Partnerships with Non-OECD Economies - Section 2.3

2. EVALUATION AND IMPACT

2.3 Surveys of Past Experts and Participants

The survey of past experts was conducted with the assistance from the member country co-ordinators of experts.  The questionnaire was distributed to past experts who have participated in OECD events between 2002 and 2004.  A total of 53 experts have responded to this survey to date.  The respondents include experts from Australia, Denmark, Germany, Ireland, the Netherlands, Norway, New Zealand, Spain, Turkey, United Kingdom and United States, which have contributed a significant number of member country experts to the OECD tax partnership programmes. 
The NOE participants who have attended OECD events held at the Multilateral Tax Centres (in Ankara, Budapest, Chonan, Mexico and Vienna) between 2002 and 2004 were randomly selected to respond to the participant survey.  Overall, 275 past participants were selected from 57 countries to participate in this survey.  A total of 60 responses were received which, partly because of difficulties in contacting some past participants, is equivalent to an effective response rate of 32%.  The participant responses were received from 21 countries (Albania, Argentina, Azerbaijan, Bolivia, Bulgaria, Cambodia, Chile, China, Cyprus, Czech Republic, Hong Kong, Kyrgyz Republic, Mongolia, Morocco, Nepal, Serbia and Montenegro, Slovak Republic, Slovenia, South Africa, Trinidad and Tobago and Ukraine). 
These surveys provide feedback from the OECD member country experts and NOE participants on:
a) the effectiveness of OECD events in promoting dialogue on tax issues;
b) the benefits that the experts and participants have gained directly;
c) the benefits that their countries gained indirectly from their participation in OECD events; and
d) the extent of bilateral contacts that have developed as a results of participation in OECD events and the ways in which these contacts benefited their countries.

2.3.1 Effectiveness in Promoting Dialogue

The results from the expert survey shows that a large majority of the experts believed OECD events to be effective in promoting dialogue on international taxation issues.  41 of the 53 respondents rated the effectiveness of OECD events on a scale of 4 or 5 out of the highest rating of 5.
Most OECD experts recognise the importance of dialogue with NOEs and appreciate the opportunities to have a meaningful dialogue with NOEs at the early stages when these NOEs are just beginning to consider international taxation issues such as tax treaties, transfer pricing, thin capitalisation, etc.  The experts noted that the dialogue taking place at these early stages can help the NOEs better understand the practices of OECD countries.  This dialogue is effective in influencing the future developments of policy, legislation and administrative practices in NOEs in dealing with OECD countries and international businesses.  For example, a number of the past experts listed their experiences with China and India in the areas of transfer pricing and exchange of information as examples where dialogue has been effective and should have a significant benefit to the OECD countries.
The responses from participants also supported the views expressed by the experts that OECD events have been effective in promoting dialogue.  They noted that the dialogue is effective not only between OECD countries and Non-OECD Economies (NOEs), but also among the NOEs themselves.  A majority of the participants rated OECD events to be effective (at a scale of 4 or 5, out of the top scale of 5) when asked to rate the effectiveness of OECD events in promoting dialogue.  When asked to provide examples, the participants pointed out that the OECD events achieve their objectives of promoting dialogue through informal contacts and sharing of information and practical examples on different approaches that countries adopted to deal with taxation challenges.  The dialogue has been particularly effective in areas such as auditing multinational enterprises, avoidance and evasion, tax administration, treaty application and negotiation, positions on OECD Model Tax Convention and transfer pricing.

2.3.2 Direct Benefits

Most experts rated the experience gained from participation in OECD events to be highly useful in helping them resolve work related issues.  Many experts identified increased awareness of OECD standards and guidelines, better understanding of their countries’ policies and practices and other countries’ tax systems acquired when preparing for and participating in the OECD events as valuable skills that assisted them in performing their work.   
Increased awareness of other countries’ taxation approaches, particularly in relation to how different these approaches could be, have broadened the experts’ perspectives on international taxation issues.  As a result, many experts recognised that it is in the mutual interests of tax officials in OECD countries and NOEs alike to work together to arrive at a factually correct and fair tax result.  In many instances, the increased awareness of other countries’ taxation approaches to a particular industry (e.g. Oil and Gas) or tax issue (e.g. tax treaty or transfer pricing) helps inform the experts’ own work approaches.  Many experts commented that this increased awareness also influenced their input into the development of their country’s strategies in dealing with similar taxation issues.
The participants also provided many examples where OECD events have had a direct impact on their work.  They mentioned that participation in the OECD events have helped them

• in the preparation of legislation and tax treaty negotiation;
• to clarify provisions in domestic and tax treaty provisions;
• in improving existing tax provisions; and
• to enhance practical audit approaches.

Participation in OECD events directly exposes the participants to OECD principles and standards. This exposure helps the participants to resolve work related issues when they return to their countries and influence the way they carry out their work.  When asked to rate the usefulness and effectiveness of OECD events in this regard, a majority of the respondents rated the OECD events to be useful and effective (i.e. at a scale of 4 or 5, out of the top scale of 5).  Exposures to OECD principles and standards and other country’s experiences at the OECD events have influenced the participants’ work approaches in other ways.  Although many participants have noted that dialogue does not mean harmonization of approaches, the OECD principles often become standards that their countries can aim at achieving or use as a ‘norm’ in negotiation with other countries. Many participants also noted that the exposures have resulted in improved audit effectiveness and a better understanding of transfer pricing issues.  This has a significant benefit for the OECD member countries in their dealings with Non-OECD Economies.
When the respondents were asked about the impact of OECD events on their career, the responses received were mixed.  The most notable comments were that even when there is no direct impact on their career, the knowledge obtained from OECD events was very useful as it helps in their personal development as experts in their field and/or in their countries.  Many noted that the OECD events also contributed indirectly to their career development as their performance in the field (e.g. during an audit) improved as a result of applying the technique or information obtained from OECD events.

2.3.3 Wider Benefits

The impact of OECD events need not, of course, be restricted only to the OECD experts and Non-OECD participants who took part in these events.  The OECD events have a wider impact in the member countries if there is a channel for the experts to disseminate the information and benefits gained.  In this regard, the member countries appear to be less focussed than the NOEs in taking the opportunity provided and disseminating more widely the information obtained from OECD events.
Many OECD country experts have indicated that although there is no formal channel in their countries, they have disseminated the information and shared their experiences informally with colleagues either by conducting training sessions or by providing oral reports at team meetings.  Many OECD experts also submitted reports to their management on the participation in OECD events.  More importantly, some experts indicated that they have passed selected information obtained at OECD events to the relevant business sections that may find the information useful (e.g. in mutual agreement proceedings or to initiate exchange of information).
The NOE participants also indicated that the OECD events have many enduring effects not only for the participants directly but also for their colleagues and countries indirectly.  The impact of OECD events can extend beyond the immediate participants if the information is disseminated to others in their countries.  Almost every participant who responded to the survey indicated that they disseminated the information obtained from participation in OECD events.  This is typically done by:

• Submitting a report to their management and superiors;
• Distributing the information to other relevant departments (e.g. law drafters, auditors, or training departments) and regional offices;
• Sharing the report with other colleagues;
• Influencing junior colleagues in their work approaches by conducting training seminars;
• Incorporating the OECD materials into internal training modules.

The participants have also provided examples where the disseminated OECD materials influenced domestic tax legislation and approaches to international tax issues in NOEs.  Many respondents have noted that the disseminated information often influenced their colleagues’ work approaches in the course of auditing transfer pricing issues particularly following special transfer pricing workshops.  In many instances, this has resulted in more tax revenues for their tax administrations.  The disseminated information also increased their colleagues’ sensitivity to international taxation issues and increased their interests in the topics such as double taxation and double non-taxation.  Many respondents also noted that they are able to influence their colleagues to be more efficient and effective in dealing with international taxation issues.
In terms of the benefits that participation in OECD events could bring to the OECD countries and NOEs at the macro level, many experts noted that OECD countries benefited indirectly as participation in OECD events have a positive impact on their performance at work.  Although it can be difficult to quantify the benefits that member countries gained from providing experts to participate in OECD events, information obtained from these OECD events often has a direct practical impact on the work of the experts.  For example, information obtained from OECD events has been used in the development of transfer pricing regulations and auditing manual and in the development of tax policy.
The cascading effects are also evident from the participants’ views on how their countries have benefited from the OECD events.  Their comments showed that Non-OECD Economies benefited at the macro level through the knowledge and information that the participants bring home with them.  OECD principles and standards discussed at the OECD events have contributed to some tax policy, administration and legislative changes in the NOEs, for example, in the area of tax treaty negotiation and application, transfer pricing and exchange of information.  These changes bring the standards in Non-OECD Economies closer to that in the OECD countries and help to avoid potential conflicts in bilateral dealings between OECD countries and Non-OECD Economies.

2.3.4 Benefits of Bilateral Contacts

Bilateral contacts established during OECD events and further developed after the event (primarily via emails) have also benefited the member countries.  These benefits come in the form of better access to information about other countries’ tax law and practices and improved bilateral contacts to resolve international tax issues.  Many experts indicated that bilateral contacts developed at OECD events are useful in obtaining information from other countries (including both the member countries and the NOEs) and provided them with better insights into the policies and procedures adopted in other countries.  Many experts also noted that by facilitating dialogue between representatives of different revenue authorities, the OECD events assist in meeting the challenges of globalisation by promoting increased co-operation between tax authorities.   
The experts also developed a closer relationship with their counterparts in other OECD countries as a result of participation in OECD events.  The contacts between different OECD member country experts working in the same field are often equally beneficial to the OECD countries compared with the contacts made with NOEs.
For the participants, bilateral contacts made during the OECD events have also helped some participants in their work, particularly in obtaining information about experiences or legislation in another countries and information about cases, practical approaches or new techniques in managing certain taxpayers.  The areas where these bilateral exchanges of information have occurred most frequently are in the area of auditing multinational enterprises, tax incentives, value added taxes and tax treaty application. 
Although the benefits of bilateral contacts made during the OECD events appear to be of secondary importance for some of the participants, there are some instances where these contacts have contributed directly to the development of a new policy or the adoption of a new technique by the NOEs.  When asked to provide examples of benefit to their countries the participants responded that the bilateral contacts are useful when they need to obtain information to improve their countries’ tax policy/legislation, to resolve potential conflicts with another countries, to gauge interests in and to set up bilateral treaty negotiations, to obtain information for comparative studies and to share information about mutual problems.