The Financing for Development Office (FfDO) of UN-DESA organized, in cooperation with the OECD Center for Tax Policy and Administration (CTPA), the 2nd workshop on “Tax Base Protection for Developing Countries” with the participation of representatives of developing countries.
This meeting was part of a project, undertaken by FfDO, focused on strengthening the capacity of developing countries to increase their potential for domestic revenue mobilization through enhancing their ability to effectively protect and broaden their tax base. The work of the project covers a number of topics of particular interest and relevance to developing countries, at their stage of capacity development, with a view to supporting them in assessing, from their own perspective, a range of practical and workable options which could be implemented by these countries, resulting in increased tax revenues. The project draws upon and contributes to the work of the UN Committee of Experts on International Cooperation in Tax Matters and its relevant Subcommittees, including the Subcommittee on Base Erosion and Profit Shifting (BEPS), as well as the work of the OECD project on BEPS, as appropriate, with a view to complementing that work from a capacity development angle. The final outcome of the project will be a UN handbook, comprising a collection of papers developed in a novel demand-driven manner taking into account inputs from developing countries.
This workshop focused on the following topics: (1) Preventing the artificial avoidance of PE status; (2) Neutralizing effects of hybrid mismatch arrangements; (3) Limiting interest deductions; (4) Taxation of capital gains; (5) Preventing tax treaty abuse; and (6) Transparency and disclosure.
Participants in this meeting were also invited to attend the OECD meeting with Non-OECD Economies (24 September, Paris). During that meeting, the UN contributed to several sessions reporting on its work in the areas of: (a) wasteful tax incentives designed to attract investment; (b) indirect transfers of assets; and (c) excessive payments to foreign affiliated companies in respect of interest, service charges, management and technical fees and royalties.
- Note by UN Subcommittee on BEPS
- Questionnaire on countries experience on BEPS
- Replies to questionnaire
- Paper on Preventing the Artificial Avoidance of PE Status
- Paper on Neutralizing Effects of Hybrid Mismatch Arrangements
- Paper on Limiting Interest Deductions
- Paper on Taxation of Capital Gains
- Paper on Preventing Tax Treaty Abuse
- Paper on Transparency and Disclosure
- OECD Project on BEPS
- First Workshop on Tax Base Protection for Developing Countries