Global relations in taxation
Tax and Development Programme
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Developing countries are frequently reporting the need to implement measures designed to balance protecting their tax base whilst creating a transparent and predictable investment climate through the introduction of rules that are effective in addressing base erosion and profit shifting (BEPS) and create certainty and consistency for business. Global implementation of the BEPS outcomes aims to protect the tax base of countries and provide a more certain investment climate through the consistent implementation of international standards and best practices.
The Tax and Development Programme delivers support initiatives for developing countries seeking to implement or strengthen their regimes for addressing transfer pricing and other BEPS-related issues, through two-to-three year-long capacity development programmes. These programmes are demand-led and provide solutions to the different needs developing country tax administrations have in the area of transfer pricing and other BEPS matters. Most of the programmes are delivered in co-operation with international agencies such as the African Tax Administration Forum, the European Commission and the World Bank Group.
To support developing countries, the OECD has established a multi-stakeholder Task Force on Tax and Development bringing together OECD member countries, emerging and developing countries, international and regional organisations, civil society and business. Together, the goal is to take action to improve the enabling environment for developing countries to collect appropriate and adequate tax revenues and to build effective states. The OECD's Tax and Development Programme underpins the work of this Task Force.
AREAS OF WORK
The Task Force on Tax and Development is currently focused on the following areas:
Global Insight into Tax and Development Issues and Domestic Resource Mobilisation
- Statebuilding and Accountability: Taxation provides essential funding for development and is at the core of building capable states. We are currently focused on taxpayer education and measuring tax morale.
- Taxation and Development Co-operation: The Tax and Development Programme gathers evidence and offers guidance for development co-operation agencies on how to provide more and better support to country-led domestic resource mobilisation (DRM) efforts.
Capacity Building Activities
- Tax Inspectors Without Borders (TIWB): TIWB is a joint initiative of the OECD and the United Nations Development Programme (UNDP), designed to support developing countries to build tax audit capacity. In a real-time 'learn by doing' approach, TIWB facilitates the sharing of expertise by the deployment of experienced tax auditors on a demand-led basis to developing countries.
- Extractive Industries: For many developing countries, raising tax revenue from extractive industries is essential for growth and development. We are currently assisting developing countries with the challenges they face, particularly in understanding mining industry practices and mineral product pricing.
- Toolkits: Under the Platform for Collaboration on Tax, the Programme is involved in preparing tools to assist developing countries address pressing BEPS and related issues. The first toolkit: Options for Low Income Countries' Effective and Efficient Use of Tax Incentives for Investment was delivered in 2015, providing an in-depth analysis of the efficiency of tax incentives and formulates recommendations regarding best practices. The other toolkits will be published in 2016, 2017 and 2018.
- Training and Outreach: Our Global Relations activities expand the global dialogue on tax issues, to enable the global development and implementation of effective standards and best practices, and conduct training courses on BEPS and other tax issues with non-OECD countries.
- Support to the Inclusive Framework on BEPS: We support developing countries to participate effectively in the Inclusive Framework process, so that BEPS implementation is truly global and reflects the views and needs of developing countries.
The Task Force on Tax and Development, co-chaired by Senior representatives of the Governments of South Africa and the Netherlands, brings together stakeholders to discuss current tax and development issues facing developing countries. Its role is to advise the Committee on Fiscal Affairs (CFA) and the Development Assistance Committee (DAC) in delivering a Tax and Development Programme to improve the enabling environment for developing countries to collect taxes fairly and effectively. Since its creation in 2010, its members meet annually to monitor progress and identify areas of opportunity for working with developing countries.
- Seventh Meeting, Paris - France, planned for the first quarter of 2017. Further information to follow.
- Sixth Meeting, Paris - France, 1st March 2016. Read the Co-Chairs' Statement.
- Fifth Meeting, Paris - France, 2-3 November 2015. Read the Co-Chairs' Statement