Description
There is emerging consensus that IFFs should include cross-border movement of illicit funds and assets undertaken in contravention to national laws and international conventions, including tax-related IFFs (tax evasion). There is disagreement, however, on whether tax avoidance, aggressive tax planning and optimization and treaty shopping should be considered within the ambit of IFFs as these flows often fall in a grey area between legality and illegality due to differences in legal standards. Nonetheless, tax evasion and avoidance tend to adversely affect the tax base of developing countries stripping them of the needed public resources to finance their own development imperatives. The panel will deliver expert insights and assessments on best practices to enhance the effectiveness of tax administration for development, including addressing base erosion and profit shifting and transfer pricing practices that continue to undermine taxation systems and the more broader effort towards enhancing domestic resource mobilization capacities.
