14/11/2024 – On 6 November 2024, the Global Forum, working with African countries and with the support of partners and donor countries, successfully launched a new Model Manual on Cross-border Assistance in the Recovery of Tax Claims during a virtual event attended by 206 participants from 56 jurisdictions.
The Model Manual provides practical guidance on the processes and procedures necessary for effective participation in cross-border assistance in tax recoveries. It builds on the Toolkit for Establishing a Function for Cross-border Assistance in the Recovery of Tax Claims, which was launched in July 2023 under the framework of the Africa Initiative.
When taxpayers become internationally mobile, tax authorities’ powers remain limited to the borders of their respective jurisdictions, and a jurisdiction cannot use its domestic powers to enforce a tax obligation, or to recover an outstanding tax claim from assets held by or revenue sources due to a tax debtor in the territory of another jurisdiction. Cross-border assistance in the recovery of tax claims thus provides a means to recover an outstanding tax claim, regardless of the location of the tax debtor, its assets or revenue sources.
The Africa Initiative is an African-focused programme launched in October 2014 to unlock the potential of tax transparency and co-operation in Africa. It is a joint effort by African members, regional organisations and development partners to raise awareness, develop exchange of information capacities across the continent and fits into the broader agenda of tax transparency to stem illicit financial flows and increase domestic resource mobilisation, which are central to the African Union Agenda 2063 and Sustainable Development Goals. It currently counts 39 members and is co-chaired by South Africa and Togo.
The Global Forum is the leading multilateral body mandated to ensure that jurisdictions around the world adhere to and effectively implement both the exchange of information on request standard and the standard of automatic exchange of information. These objectives are achieved through a robust monitoring and peer review process. The Global Forum also runs an extensive capacity-building programme to support its members in implementing the standards and help tax authorities make the best use of cross-border information sharing channels.
The Global Forum capacity-building programme is supported by the following development partners:
