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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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