Overview of Tax Outreach WG3 Meeting – Session II Cairo, Egypt 6 September 2005 Terminology MENA-OECD Investment Programme

MENA-OECD Investment Programme Strategic Objectives Removal of tax obstacles to inward investment Ensure a fair sharing of the international tax base Improve the domestic tax base The CFA ‘s mission statement requires it to encourage the integration of NOEs into the world economy by adopting its standards, guidelines etc, but also critical priority to help NOEs to secure their tax bases. This is the real foundation for development – without a solid infrastructure, transparent tax system and a well trained labour force it is much more difficult for developing countries to compete in the market for FDI. The alternative is for developing countries to try and compete for FDI by reducing transparency and therefore the tax take which would have significant negative effects on the infrastructure, the well being of the population as a whole and all others with whom the developing country is in direct competition. MENA-OECD Investment Programme

Implementing the Strategic Objectives Develop a clear strategic approach linking objectives, needs, delivery, outcomes and financing Base programme on assessment and needs of stakeholders including members, Non-OECD countries, business, and partners in international organisations After 10 years of developing activity with NOEs which had been dealt with primarily on a programme management level, the CFA set up a Board to advise it on outreach strategy. This Board was tasked to develop an overall strategy encompassing and linking all relations with NOEs from the planning of contacts through to the delivery and assessment of impact. The strategy which was agreed by the CFA in 2003 was based on surveys of key stakeholders. This process encouraged the Board to focus on the CFA’s relationship with individual countries – and where it was felt this relationship should go. It also took into account our developing co-operation with NOEs and in particular recognised the critical need to evaluate what it was the CFA was doing. Was this serving the needs of the organisation, the needs of our partners and other stakeholders? MENA-OECD Investment Programme

Implementing the Strategic Objectives Focus on a realistic assessment of the nature of co-operation with particular regions Work closely with other international organisations to ensure maximum impact and avoid duplication Evaluate short term events and establish outcomes in longer term to feed back into developing partnerships After 10 years of developing activity with NOEs which had been dealt with primarily on a programme management level, the CFA set up a Board to advise it on outreach strategy. This Board was tasked to develop an overall strategy encompassing and linking all relations with NOEs from the planning of contacts through to the delivery and assessment of impact. The strategy which was agreed by the CFA in 2003 was based on surveys of key stakeholders. This process encouraged the Board to focus on the CFA’s relationship with individual countries – and where it was felt this relationship should go. It also took into account our developing co-operation with NOEs and in particular recognised the critical need to evaluate what it was the CFA was doing. Was this serving the needs of the organisation, the needs of our partners and other stakeholders? MENA-OECD Investment Programme

Reach of Programme Country Programme: Russia Baltic Programme Argentina, Brazil Country Programme: China, Hong Kong, India, Malaysia Latin America Programme Baltic Programme Regional Programmes: Asia Southern/Central Africa West/North Africa Country Programme: South Africa OECD Multilateral Tax Centres: Austria, Hungary, Korea, Turkey MENA NEPAD SEE The programme of falls into 2 main categories:- The first category is made up of approximately 60 events a year, the majority of which are on core CFA topics, for example on tax treaties, transfer pricing and exchange of information. The multilateral events take place Through Global Forum on Taxation events in Paris and elsewhere and at our 4 MTCs (Austria, Hungary, Korea, Turkey) Within our regional programmes – Latin America, Asia, Baltics, and exploratory with South/Central and North and West Africa Second category includes three demand driven programmes with a strong development focus New Partnership for African development (NEPAD) Middle East and North Africa (MENA) South Eastern Europe (SEE) These involve a developing dialogue focussed on improving conditions for attracting FDI – including studies, and developing proposals as well as events Programme management is done by the Advisory Group on Co-operation with NOEs which contains a number of NOEs as well as members – and where NOE partners provide impact analyses. MENA-OECD Investment Programme

MENA-OECD Investment Programme Stakeholder Analysis Based on surveys of member countries, non-OECD countries, business (through BIAC) aimed at Effectiveness of targetting Impact in countries (both members and NOEs) Management efficiency Areas for improvement The result A good product but better focussed to develop dialogue with the right countries, on the right topics at the right time These surveys were developed in early 2003 – completed by most members and around 40 NOEs as well as by business – surveyed through BIAC. The surveys essentially looked at whether the programme worked effectively for its stakeholders and what could be improved. The new focussed strategic approach is the direct outcome of this process. MENA-OECD Investment Programme

MENA-OECD Investment Programme General Approach Enhancing partnerships with developing economies in Africa, Asia, Latin America and the Middle East Major aim to encourage investment friendly tax systems that raise adequate revenue Delivery through co-operation with the IMF, World Bank, and Member Country Programmes MENA-OECD Investment Programme

MENA-OECD Investment Programme The ITD An OECD, IMF, World Bank initiative in response to Monterrey Aims are to Co-ordinate technical assistance Encourage experience sharing Develop good practices By Technical assistance database Global conference and web based exchanges Identifying global issues (e.g. the content of technical assistance) MENA-OECD Investment Programme

MENA-OECD Investment Programme Major Topics Tax Treaties and Exchange of Information International Tax Topics – Transfer Pricing Taxation of Non-Residents Avoidance and Evasion Tax Policy Analysis and Modelling Tax Incentives Tax Administration MENA-OECD Investment Programme

MENA-OECD Investment Programme Outcomes Analysis Critical basis for future activity and generating resources Event evaluation Evaluation by participants and professional evaluation by Canada and UK evaluation service Impact evaluation Country and business surveys (at 3 year intervals) Annual reports by countries within comprehensive engagement to our Advisory Group for Co-operation Biennial reports to the CFA by Observers MENA-OECD Investment Programme

MENA-OECD Investment Programme Keys to Success Programme driven by both OECD and non-OECD countries Focus on activities where OECD has a comparative advantage Use of Member country expertise and cost-effectiveness of multilateral approach MENA-OECD Investment Programme

MENA-OECD Investment Programme Key Topics for 2006 Tax Treaties Transfer Pricing Management&Control of Large Taxpayers Tax Analysis Auditing MNEs and SMEs Tax Incentives Taxation non-residents MENA-OECD Investment Programme

MENA-OECD Investment Programme Topics for 2006 Feedback on which topics are of particular interest to you? Topics listed on previous slide Alternative topics for MENA only seminars Your views relayed to outreach management Topics finalized and invitations sent at the end of 2005 MENA-OECD Investment Programme