Regional Workshop on International Tax Standards: Risks and Benefits for Pacific Developing Countries

During the last decade, unprecedented efforts have been undertaken by the international community to tackle tax evasion, tax abuse and unfair tax competition at the global level. As part of a wider international tax cooperation agenda, the European Union (EU) and the Group of Twenty (G20) are promoting international tax standards and EU tax good governance principles of tax transparency, fair taxation, and anti-Base Erosion and Profit Shifting (BEPS) measures developed by international standard setting bodies like the OECD. While the Global Forum and the G20/OECD Inclusive Framework on BEPS conduct peer reviews to assess the implementation of tax transparency and BEPS minimum standards, the EU and the G20 developed listing processes, aimed at putting pressure for reform on tax legislation and practices as well as intensifying action to create a level playing field.

As a result of peer reviews and listing processes, Pacific developing countries are facing political pressure to bring their tax systems fully in line with international tax standards and EU tax good governance principles, within specific timelines. On the one hand, the on-going COVID-19 pandemic has imposed additional and significant constraints on the capacity of the Pacific developing countries to pass and implement tax reforms. On the other hand, raising the global level of tax good governance also offers important benefits to developing countries to protect their tax base and increase much needed revenue collection, as they are disproportionately impacted by international tax abuse and illicit financial flows. In the aftermath of the COVID-19 pandemic, it can also be a critical step to increase the country’s ability to attract funding that promotes sustainable development and encourage foreign investments that boots the domestic economy.

This 3-day workshop aims to assist the Pacific developing countries’ efforts to adopt and complete required reforms to create a level playing field by:

1. Improving awareness of the participants about the international tax standards and EU tax good governance criteria, the listing processes and implications of the lists;
2. Identifying key challenges and issues that affect the ability of their countries to comply with international tax standards and EU tax good governance principles;
3. Identifying available tools and opportunities to address the challenges at the political, legal and technical levels to implement international tax standards and EU tax good governance principles; and
4. Developing a high-level action plan to address any deficiencies based on approaches proven effective as shared by presenters and fellow participants.