1. International Cooperation on Tax
Joseph Stead – Senior Policy Analyst
Global Relations and Development
Centre for Tax Policy and Administration
Nairobi 13 March 2019

2. The International Tax Landscape
The International Tax Landscape is very different from before 2008 financial crisis
Significant increase in tools available to all countries to address tax avoidance and evasion
Significant change in participation in international fora where international tax is discussed
More change to come
Challenges remain – especially for developing countries

3. New Tools Available – Exchange of Information
Previously bilateral treaties
Very few with tax havens
Often required sacrifice of taxing rights too
Multilateral Convention on Mutual Administrative Assistance in Tax Matters
127 signatories (14 African) – facilitates information exchange among them all
Much simpler way for developing countries to access information – no need to sacrifice tax base

4. New Tools Available – Exchange of Information
Automatic Exchange of Information
Addresses the unknown unknown problem – can’t ask if you don’t know what to ask for
Information on financial accounts held offshore (estimates that 30%+ of African owned wealth held offshore)
Over USD 90 billion raised globally in voluntary disclosure in advance of first exchanges
102 countries committed
Developing countries face political and capacity barriers to benefitting – but progress is being made

5. New Tools Available - BEPS
First major reform in international corporate tax in 60+ years
Provides the tools to address a number of the most aggressive forms of MNE tax avoidance
Excessive interest deductions
Use of certain types of tax incentives
Treaty shopping
4 minimum standards providing consistent, widespread implementation of tools that have cross-border impact

6. Inclusion in international fora
Global Forum on Transparency and Exchange of Information for Tax Purposes
154 members – 25 African
Inclusive Framework on BEPS
129 members – 23 African

7. The challenges of digital economies require further changes
More changes to come
The challenges of digital economies require further changes
Where is value in the digital world?
Inclusive Framework looking to produce consensus by 2020
Several proposals currently on the table – including GLOBE (akin to global minimum tax)

8. Challenges Capacity Political will
International tax is complex – needs (valuable) skills
Political will
Legislation, treaties, and changes of behavior are needed – requires political commitment, not always there, not always sustained

9. Thanks – Questions? Joseph Stead – Senior Policy Analyst
Global Relations and Development
Centre for Tax Policy and Administration
Nairobi 13 March 2019