Category: Articles

Taxation of multinational corporations is of utmost importance to developing countries, which on average generate around 10% of government revenues from this source. However, there are clear indications that the current international system is not working. One type of tax avoidance alone is currently costing developing countries between $70 billion and $120 billion per year. While often considered highly immoral, such international tax avoidance is often, technically speaking, legal.

One of the solutions proposed to developing countries to increase their capacity to collect taxes from MNCs’ activities in their territory is the offer of ‘capacity development’ and ‘technical assistance’ on taxation. While there is broad agreement that this is important and urgent, questions arise about how capacity development and technical assistance should be carried out. In particular, the importance of respecting the principles of aid effectiveness and avoiding conflicts of interest between the providers and recipients are central issues.
Yes, but ... read the revealing report on conflicts of interest