Global Financial Integrity

 

2011 OECD International Tax Conference in DC Addresses Illicit Financial Flows, Development

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Monique Perry Danziger, +1 202 293 0740 ext. 222

Gathering of Influential Tax Professionals Examines Tackling Illicit Financial Flows, Corruption, Tax Evasion, and Tax Avoidance

WASHINGTON, DC – The 2011 OECD International Tax Conference taking place today is expected to include dialogue on tax and development with a focus on two key issues: the impact of illicit financial outflows on developing countries and country-by-country reporting.

“Developing countries lose $1 trillion every year to illicit financial flows,” said Global Financial Integrity (GFI) Director Raymond Baker. “Country-by-country reporting would be a major step forward in curtailing these harmful outflows which undermine official development assistance and hinder economic development.”

The conference will also include panels on improved international tax cooperation and transfer pricing issues.

“The current OECD standard on tax information exchange needs to be improved,” said Mr. Baker. “An automatic exchange of tax information standard between countries would enhance tax collection by leaps and bounds.

“It is also crucial that sufficient attention be given to transfer pricing by multinational corporations,” continued Baker.  “Approximately 60% of global trade is conducted by multinational corporations with half that amount between subsidiaries of a parent company.  Transparency and accountability in this area would ensure that developing countries derive sufficient revenue from foreign direct investment.”

“The writing is on the wall,” said David McNair of Christian Aid, who is expected to talk at a panel this afternoon on tax collection and economic development. “Businesses will have to be more transparent in the future. The more progressive multinational companies recognize it is already unacceptable to dodge taxes to the detriment of the poor in developing countries, and the profile given to the tax and development debate at this conference is testament to the growing importance of these issues on the international stage.”

Christian Aid is part of the Task Force on Financial Integrity and Economic Development, a consortium of governments and research and advocacy organizations led by GFI, which focuses on achieving greater transparency in the global financial system for the benefit of developing countries.

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