IMF Managing Director, Christine Lagarde
If you’re more than a bit surprised to read about the IMF’s new found interest in the global debate on tax evasion, aggressive tax planning, fair taxation and excessive profits shifting, that probably means you haven’t read this.
This month’s new public consultation launched by the IMF on March 3, seeks the public’s opinion on:
- the economic, financial and taxation effects that international double taxation agreements have on developing nations;
- the technical aspects of profit shifting carried out by multinational corporations, and
- the international push for greater disclosure on the source of profits earned by multinationals.
At the launch, Michael Keen, Deputy Director in the IMF’s Fiscal Affairs Department (FAD) observed that “…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.”
Angel Gurria, Secretary-General, OECD
Having last year confirmed that the OECD remains well placed to do the technical work in this area, and defined the Fund’s own comparative expertise in international tax issues based on “its unparalleled technical assistance experience on these issues, recognized expertise in their economic analysis, and the near-universal Fund membership; many will be keen to the will read what conclusions the FAD draws from its analysis of the input from governments, academic researchers, think tanks, and the private sector.