The International Monetary Fund (IMF) and World Bank has stated that they are going to join forces with other international organizations to cooperate on tax issues and develop new tools and standards to halt tax base erosion and evasion. This new group will also include the United Nations and the Organization for Economic Cooperation and Development.
The new group will particularly focus on building effective tax systems in developing countries and avoid tax base erosion. The decision was announced after the release of ‘Panama Papers’, which highlighted the widespread use of tax haven countries by wealthy individuals to avoid taxes.
The group will help emerging marketing countries to develop policies for the “informal” sectors of their economies that operate in cash transactions outside the tax system. It also aims to provide “toolkits” to help developing countries implement measures developed under a previous G20/OECD tax effort, known as the “Base Erosion and Profit Shifting” project.
Global finance leaders at the IMF and World Bank spring meetings in Washington last week pledged to crack down on tax evasion and base erosion, as well as to fight the exploitation of tax law mismatches and boost the sharing of tax information. Apart from this the Finance ministers and central bank governors from the Group of 20 major economies has also pledged last week to penalize countries that fail to cooperate in these efforts by implementing “defensive measures.”
Extra Info :
IMF MD : Christine Lagarde
World Bank President : Dr. Jim Yong Kim
United Nations Secretary-General : Ban Ki Moon
OECD Secretary General : Angel Gurría
So now let’s discuss some questions related to this post :
1. Name the 4 organizations, which has planned to form a new group to stop tax erosion ?
2. Who is the Managing Director of International Monetary Fund ?
Courtesy : Business Times