21 April 2016 Current Affairs: Four international organization joined hands to form the Platform for collaboration in Tax Matters on 19 April 2016. The Platform has been created as their step to boost global cooperation in tax matters.The announcement regarding this was made just within two weeks after the release of the "Panama Papers" that stirred outrage at the widespread use of tax haven countries and shell companies by wealthy global elites and corporations to hide assets and avoid paying taxes.International Organisations :
The organisations that joined their hands to intensify their cooperation on tax issues include
- The International Monetary Fund (IMF)
- The Organisation for Economic Co-operation and Development (OECD)
- The United Nations (UN)
- The World Bank Group (WBG)
Amid the growing importance of taxation in the debate to achieve the UN Sustainable Development Goals (SDGs), the aim of the Platform is to better frame technical advice to developing countries as they seek both more capacity support and greater influence in designing international rules.Tasks :
It will deliver a number of ‘toolkits’ designed to help developing countries implement the measures developed under the G20/OECD Base Erosion and Profit Shifting Project and on other international tax issues.The first of these toolkits, focusing on tax incentives, was delivered in November 2016.There will be an important link to the new Base Erosion and Profit Sharing (BEPS) implementation framework. Platform members will hold regular meetings with representatives of developing countries, regional tax organizations, banks and donors. Consultations with business and civil society will be organized as needed.The Platform will not only formalize regular discussions between the four international organizations on the design and implementation of standards for international tax matters, but will strengthen their capacity-building support, deliver jointly developed guidance, and information-sharing on operational and knowledge activities.It will especially focus on building effective tax systems in developing countries and avoid tax base erosion.