IMF Launches International Public Consultation
March 6, 2014 International Tax Cooperation
WASHINGTON D.C. – The IMF is looking into how the tax policies of different countries can potentially interact to unintentionally facilitate tax evasion, aggressive tax planning, and excessive profit shifting.
On March 3rd the International Monetary Fund announced that it has launched a public consultation to be run over the course of this month on the topic of spillovers in international taxation, and is now calling for input from governments, academic researchers, think tanks, and from the private sector.
The consultation will address the issue of international tax evasion committed by wealthy individuals, and the common practice of multinational corporations to exploit the loopholes arising from the differences between the tax regimes in various jurisdictions.
Launching the new consultation, the IMF specifically asked for international public opinions on the economic, financial and taxation effects that international double taxation agreements have on developing nations, on the technical aspects of profit shifting carried out by multinational corporations, and on the international push for greater disclosure on the source of profits earned by multinational.
Explaining the importance of the fully understanding spillovers in international taxation the Deputy Director in the IMF’s Fiscal Affairs Department the Michael Keen said “…it is widely recognized that the current international tax architecture, designed for a very different world of a century or so ago, is under considerable strain,” and “…with that in mind, the IMF work will consider both the operation of the current architecture and more fundamental reforms that have been proposed by academics, civil society, and others.”
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