The World Bank and the IMF have released a new initiative to support tax systems in developing countries; a link to the press release is provided for reference.
- World Bank Group President Jim Yong Kim’s statement: “If everyone pays their fair share – developing countries can close their financing gaps and promote inclusive growth.”
- The IMF and World Bank will continue to collaborate with the OECD and other development partners in expanding tax assistance and expertise.
- Two pillars of development:
- International tax dialogue to increase their collective voice
- Developing diagnostic tools to evaluate and strengthen tax policies
These developments will be a key metric to monitor, in view of the increased complexity and documentation demands in a post-BEPS era.
Multinationals may also view these developments as added impetus to be more proactive in engaging with tax authorities in developing countries to better understand their business, as well as provide expertise in the complex transfer pricing arena.