Call for inputComments and feedback is requested on the draft Options for Low Income Countries’ Effective and Efficient Use of Tax Incentives for Investment paper - Deadline: 5 August 2015.
The OECD’s Task Force on Tax and Development was created in January 2010 following the Joint Meeting on Tax and Development between the Committee on Fiscal Affairs (CFA) and the Development Assistance Committee (DAC). Its members - OECD and developing countries, international and regional organisations, civil society and business - have since met in each year, most recently in Seoul, Korea in October 2013. Co-chaired by South Africa and the Netherlands, the role of the Task Force is to advise the OECD Committees in delivering a Tax and Development Programme to improve the enabling environment for developing countries to collect taxes fairly and effectively.
Areas of work
The Task Force has identified four areas of work as key for developing countries efforts to mobilise domestic resources:
Effective transfer pricing rules can enable developing countries collect the right amount of tax from multinational enterprises, counter cross-border profit shifting and create a predictable investment climate. A programme of capacity building is underway in Colombia, Ethopia, Ghana, Kenya, Rwanda, Tanzania, Vietnam, and Zambia along with support to regional organisations such as ATAF. These country initiatives are delivered in partnership with the EU and World Bank, and involve working closely with other international assistance. New tools are helping all stakeholders do their work more effectively:
The G20 Development Working Group (DWG) has invited the OECD to write a report on the main challenges of base erosion and profit shifting (BEPS) in developing countries, how these are related to the BEPS Action Plan, and how the DWG might assist low income countries to meet those challenges (terms of reference). Part 1 of the report was discussed at the DWG meeting in Hobart, Australia in May 2014 and is now available. Part 2 of the report will be released later this year.
| Report to G20 Development Working Group on the Impact of BEPS in Low Income Countries (Part 1) (also available in French)
|Report to G20 Development Working Group on the Impact of BEPS in Low Income Countries (Part 2) (also available in French)|
Work is underway to identify best practices in enabling public access to local statutory accounts (draft report Transparency in Reporting Financial Data by MNCs). The Task Force is also monitoring developments on ongoing government transparency initiatives and in particular the rules for implementing Section 1504 of the Dodd-Frank Act and proposals for revising the EU Transparency Directive.
This includes assisting developing countries to build capacity in the area of exchange of information (EOI) the most effective tool to combat international tax avoidance and evasion, and to prepare them for the Global Forum’s peer review of their legal and administrative framework for transparency and EOI.
Pilot projects in Kenya and Ghana are helping these countries to develop an EOI network with relevant partners including jurisdictions which are the possible destination of the proceeds of tax evasion. The Task Force has also assisted ATAF to develop a Practical Guide on Exchange of information for developing countries (also available French and Portuguese).
Plenary Meetings of the Task Force on Tax and Development
The Fourth Meeting of the Task Force on Tax and Development took place in Seoul on 30-31 October 2013. Click here for more information on this meeting and the meeting documents.
The Third Meeting of the Task Force on Tax and Development took place in Cape Town on 9-10 May 2012.
The Second Meeting of the Task Force on Tax and Development took place in Paris on 11-12 April 2011.
The First Meeting of the Task Force on Tax and Development took place in Paris on 11 May 2010.
The Task Force has now gained further recognition by the G20 as a forum which brings together all the major players in this field and as such contributed to the international organisations' report to the G20 in 2011.