The OECD's Task Force on Tax and Development:
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 Cape Town in May 2012. 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. The Task Force has identified four areas of work as key for developing countries efforts to mobilise domestic resources:
Pillar 1 - State building, accountability and effective capacity development
Pillar 2 - More effective transfer pricing regimes in developing countries
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 caacity building is underway in Colombia, Ghana, Honduras, Kenya, Rwanda, Tanzania and Vietnam, 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: Country Transfer Pricing Needs Assessment Tool [currently under preparation] ; A Suggested Approach to Transfer Pricing Legislation ; Advance Pricing Arrangements – Approaches to Legislation ; Thin Capitalisation: A background Paper for Country Tax Administrations .
Pillar 3 - Increased transparency in the reporting of financial data by MNEs
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.
Pillar 4 - Countering international tax evasion/avoidance and improving transparency and exchange of information by supporting the Global Forum on Transparency and Exchange of Information.
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 is also working with ATAF to develop a Practical Guide on Exchange of information for developing countries.
Plenary Meetings of the Task Force on Tax and Development:
The Third Meeting of the Task Force on Tax and Development took place in Cape Town on 9-10 May 2012. See here for the Meeting Outcomes and the Co-Chair's Statement
The Second Meeting of the Task Force on Tax and Development took place in Paris on 11-12 April 2011. See here for the Meeting Outcomes and the Co-Chair's Statement
The First Meeting of the Task Force on Tax and Development took place in Paris on 11 May 2010. See here for the Meeting Outcomes and the Co-Chair's Statement
The Task Force has now gained further recognition by the G20 as a forum which brings together all the major players in this field. The Task Force contributed to the international organisations report to the G-20 in 2011. See the full report here
One Page Flyer on Tax and Development
For more information please contact: TaxandDevelopment@oecd.org
Task Force Sub Group on Transparency in Financial Reporting, March 2013
Task Force Sub Group on Transfer Pricing, March 2013